Privity doctrine

One further basic point, which is an important principle in contract terms, is that in general (although there have recendy been some changes in the law) the law applies a doctrine of privity . That is, that a contract only binds the parties to it, and only the parties (or their appointed representatives or legal substitutes) may enforce or sue upon the agreement. This means that a contract between sponsor and CRO does not bind the investigator or any other person. 

A manufacturer was further protected by privity of contract, or the doctrine of privity. It limits the parties involved in a... 

Similarly, a 1960 decision removed the doctrine of privity as a barrier in implied warranty cases. The court held that a buyer is not capable of determining the fimess of an automobile for use. It also recognized that under modem market conditions, a manufacmrer who places a product on the market and promotes its sale becomes a party to the sale through implied warranty. 

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