Question: privity of contract george a used car dealer enters in...
Privity of contract. George, a used car dealer, enters in a written contract to sell a car to Hillary on the following terms:
1. Hillary will pay George $10,000.
2. George warrants that the car is in good condition.
Hillary’s husband Bill, is badly injured in an accident when the car’s brakes fail. George was aware that the brakes were faulty at the time but decided not to fix them and declined to inform Hillary. Would Bill’s action against George lie in contract or tort or both? Would your answer differ if both Bill and Hillary had signed the contract for the sale of the car? (Hint: recall Coulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460, which you studied in Contracts)