Privity of contract applies in which of the following situations?
A) where an interest in land is involved
B) where a trust is involved
C) where an insurance contract is involved
D) where goods are being sold
E) where a trust has been created

Question

Quizplus · Accepted Answer

Privity of contract applies in situations where goods are being sold. This means that only the buyer and seller are bound by the terms of the contract and have legal recourse in case of a breach. Other situations such as an interest in land, trust, or insurance contract may involve third parties and therefore privity of contract may not fully apply.

Privity of Contract Applies in Which of the Following Situations