Jesse Warren Lilienthal

Summary

Jesse Warren Lilienthal Privity of Contract (1887)

And it has been held that the obligation involved in the condition of a bond is not such a promise as is available to any one, not the obligee of the bond. “But it is not every promise made by one to another, from the performance of which a benefit may ensue to a third, which gives a right of action to such third person; he being neither privy to the contract nor to the consideration, the contract must be made for his benefit, as its object, and he must be the party intended to be benefited.”
Source: Wikisource

Jesse Warren Lilienthal Privity of Contract (1887)

But where a debt clearly exists from one person to another, a promise by a third person to pay such debt, being primarily for the benefit of the original debtor, and to relieve him from his liability to pay it (there being no novation) , he has a right of action against the promisor for his own indemnity, and, if the original creditor can also sue, the promisor would be liable to two separate actions, and therefore the rule is that the original creditor cannot sue.
Source: Wikisource

Jesse Warren Lilienthal Privity of Contract (1887)

These cases are made to rest upon the ground that the person obtaining the promise, and from whom the consideration moves, intends it as a gift to the one in whose favor the stipulation reads. They seem to proceed upon some such theory as that if the promise be not for the benefit of the plaintiff it is not for that of any one, and that, as a question of policy, the one person interested in the performance of an agreement should be permitted to enforce it. It comes very near to being an exception to prove the rule.
Source: Wikisource

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