Property OwnershipIntermediateDelaware Exam

What is 'privity of contract' in Delaware real estate?

AThe privacy of a real estate contract
BThe direct contractual relationship between parties to a contractCorrect
CThe requirement that contracts be private (not recorded)
DThe privilege of an attorney reviewing a contract

Why The direct contractual relationship between parties to a contract Is Correct

Answer B: The direct contractual relationship between parties to a contract

Privity of contract is the direct legal relationship between parties to a contract. Only parties (and their legal successors) in privity of contract can generally sue each other for breach.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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