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Article: Explaining the principled exception to privity of contract.(Canada)
- Article from:
- McGill Law Journal
- Article date:
- January 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 McGill Law Journal (Canada). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The author contends that the Supreme Court of Canada was right in creating the "principled exception" to privity of contract in its decisions in London Drugs and Fraser River but not for the reasons given in those decisions. Neither the "intentions of the parties" nor "commercial reality" can explain the central features of the principled exception. Similarly, theories of subrogation and voluntary assumption of risk are also incapable of deciphering the limits imposed. Instead, the author maintains that the principled exception is merely an application of conventional estoppel to the facts found in London Drugs and Fraser Rivet" (and other similar privity cases). As such, ...