Question

National steel, inc., and overland transport company enter into a contract. superior oil corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of

a. assignment.
b. delegation.
c. privity.
d. vesting.

Answer 1

C. Privity
Privity is the legal term for a close, mutual, or successive relationship to the same right of property or the power to enforce a promise or warranty. It is an important concept in contract law.