The Effect of the Doctrine of Privity of Contract Is

question 39

Multiple Choice

The effect of the doctrine of privity of contract is that

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

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Definitions:

Borrow

To borrow means to receive something of value with the promise to return it within a specified time frame, often with interest in the case of money.

Year Mortgage

Refers to the term or length of a mortgage, typically specified in years, indicating the repayment period.

Future Value

The value of an investment or a sum of money projected to grow by a specific date, factoring in compound interest or returns.

Interest Rate

The percentage of a sum of money charged for its use, which can vary based on factors such as inflation, supply and demand of credit, and governmental policy.