privity of contract

The general rule is that the terms of a contract are only binding on the parties to such contract . Similarly , the terms in a contract of sale are only binding on the seller and the buyer . Therefore if a person becomes ill after drinking a bottle of beer which has been fouled by a decomposed snail in the bottle , he can sue the beer seller ( and not the beer manufacturer) for a breach of contract . However , he may sue the beer manufacturer for negligence under tort .