What is the doctrine of privity?

The doctrine of privity is a legal doctrine that states that only those who are parties to a contract are bound by its provisions and may sue (or be sued) in relation to it. This means that no one outside of the contract can rely on the promises made within it. In Michigan, the doctrine of privity is a well-established principle of contract law and is typically applied narrowly. Under Michigan’s law of contracts, only parties to a contract can sue to enforce it; strangers to a contract— that is, people that are not party to the contract—cannot. The doctrine of privity can have far-reaching implications in certain legal situations. For example, if a manufacturer enters into a contract with a wholesaler to distribute its products, the manufacturer cannot sue the wholesaler’s customers to enforce its promises. Similarly, the manufacturer’s promise to the wholesaler cannot be relied upon by the customers, even if they knew about it or expected it to be fulfilled. The doctrine of privity is an important concept in Michigan’s contract law and should be kept in mind when entering into any contractual agreement. It is useful to understand this doctrine because it limits the rights and responsibilities of parties to contracts, to which they are not a party. Any person or business contemplating a contractual relationship should consult an experienced Michigan contract lawyer to ensure clear understanding of the doctrine of privity, as it may affect their contractual rights and responsibilities.

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What is the doctrine of privity?

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