From:Hammond Transportation Ltd v Carey,2015 CanLII 52709 (OntSupCtJ).

Hammond Transportation Ltd provided bus services to the Bracebridge Phantoms Junior "A" Hockey Club. In 2012, the club was sold to three men, Gord Cary, Daniel Fisher, and Frank Demasi, along with all of its assets. The new company also assumed some of the club's debts, including $25,000 owing to Hammond.

One of the new owners filed a consumer proposal in bankruptcy the following year and another reached a settlement of $9,000 with Hammond. Hammond sued the third owner, Demasi, for the remaining amount.

Demasi admitted to signing the agreement with Hammond and to using the bus services after the agreement was signed. However, he claimed not to be the primary person ordering the services and that he had paid upfront the few times he had called to book a bus and, therefore, was not liable for the remaining amount.

1. How does the privity of contract impact on the case of Hammond Transportation Ltd against Damasi?

2. Did Bracebridge Phantoms Junior "A" Hockey Club intend to extend the benefit of the contract with Hammond Transportation Ltd to the new purchasers?

3. Is Damasi liable for the balance outstanding to Hammond Transportation Ltd?