The Effect of the Doctrine of Privity of Contract Is

question 18

Multiple Choice

The effect of the doctrine of privity of contract is that

• A)a person who is not a party to a contract cannot obtain benefits or rights under it.
• B)a unilateral contract is unenforceable against parties who have privity.
• C)parties to a contract are protected by the law.
• D)a bilateral contract is unenforceable against a promisee.
• E)a person can obtain rights under a contract to which he or she is not a party.

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Definitions:

Tax Revenues

The proceeds that governments secure by enacting taxes.

Tax

A financial charge or levy imposed by a government on individuals or entities, primarily used to fund public expenditures.

Deadweight Loss

Economic inefficiency created by a divergence from the optimal market equilibrium, often caused by taxes, subsidies, or other market interventions.

Beer

An alcoholic beverage made from the fermentation of cereal grains, primarily barley, with hop additions for flavor.