Which of the Following Refers to a TRUE Exception to the Privity

question 39

Multiple Choice

Which of the following refers to a TRUE exception to the privity doctrine,in the sense that a person is entitled to sue on a contract despite the fact that he or she is not a party to that contract?

• A)equitable assignment
• B)legal assignment
• C)contract of insurance
• D)trust
• E)Himalaya clause

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Definitions:

Segregating

The act of separating or setting apart from others or from the main body or group.

Implied Authority

Power not explicitly granted by a principal to an agent but deemed necessary to carry out expressly authorized duties.

Enforce Claims

The act of legally pursuing or demanding rights or commitments that have been agreed upon or are owed.

Apparent Authority

Apparent authority refers to a situation where someone appears to have, and reasonably is perceived by third parties to have, authority to act on behalf of another (the principal), even if such authority has not been formally granted.