Explain the Impact of the Principle of Privity of Contracts

question 68

Essay

Explain the impact of the principle of privity of contracts.

---

Definitions:

Binding

A term referencing agreements or legal decisions that are enforceable and must be adhered to by the parties involved.

Fiduciary Duty

The legal obligation of one party to act in the best interest of another when entrusted with care of money or property.

Utmost Good Faith

A legal doctrine requiring all parties to a contract, especially in insurance, to act honestly and disclose all relevant facts.

Business's Reputation

A business's reputation is the public perception or regard for a company, significantly influencing its success by affecting customer trust and loyalty.