Does a privative clause in a contract allow a purchaser to object to title when the vendor appears to have no title?
Manitoba, Canada
The following excerpt is from Milburn and Klippenstein v. Dueck, 1991 CanLII 11805 (MB QB):
The plaintiffs' counsel relied on Grossenback v. Goodyear, [1919] 3 W.W.R. 12, for the proposition that title is the foundation of the contract and a privative clause whereby the purchaser accepts title without production does not prevent the purchaser from objecting to title when it appears that the vendor has no title.
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