713's
privity of contract implies that an owner has voluntarily assumed primary liability for payment of the supplier or laborer.
The trial court found that the count for negligence failed because, as a matter of law, borrowers cannot sue an appraiser hired by the lender for negligence where the appraisal was prepared for a lender, and there was no
privity of contract between the appraiser and the buyers.
We would add that there is a complete lack of
privity of contract, and that the Contract cannot impose obligations arising under it on any person or even an agent, except the parties to it.
Absent a TPB clause in a Utah contract then, an owner has little recourse against a construction party with whom it lacks
privity of contract. Given the variety of legal applications, and the silence of default form language, the oldest advice remains the best: If you want something done right, do it yourself.
Sally has no contract remedies available to her because she is not in
privity of contract with the attorney, so her only recourse is in tort.
Ultimately, when the subject of a negligence lawsuit pertains to dangerous activities that are readily apparent, the negligent party is liable regardless of the existence of
privity of contract. Id.
Privity of contract has deterred direct government intervention and influence on subcontractor selection and behavior.
It raised issues on topics like
privity of contract and estate that we haven't really looked at since law school.
In other words, on projects funded by DOT or EPA, their regulations apply to downstream contractors that are not in
privity of contract with the government.
Currently, many T&Cs grant CSPs broad subcontracting rights and often seek to absolve CSPs from or transfer liability to the third party, an entity with whom the customer has no
privity of contract. Lawyers should insist on T&Cs that hold CSPs responsible for the actions of their third party subcontractors.
They have no
privity of contract with the parent or holding company affiliates of the particular insurer from which they made their purchases.