What is the test of privity of contract?
British Columbia, Canada
The following excerpt is from Toyota Canada Inc. v. Lipetz, 1998 CanLII 4473 (BC SC):
It is a general principle of the law of contract that none but the parties can sue on a contract and that none but a party can be subjected to liability under the contract. As stated by Mr. Justice Iacobucci, writing for the majority in London Drugs Limited v. Kuehne & Nagel International Ltd., 1992 CanLII 41 (SCC), [1992] 3 S.C.R. 299, at pp. 415-16: The doctrine of privity of contract...(b)roadly speaking...stands for the proposition that a contract cannot, as a general rule, confer rights or impose obligations arising under it on any person except the parties to it...
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