BL – Nov 2011 – L1 – SA – Q17 – Law of Contract

Explain the legal doctrine where a person cannot claim rights or suffer obligations under a contract unless they are a party to it.

Question

The fact that a person can neither claim right nor suffer obligation under a contract to which he is not a party is explained by the principle of:
A. Offer
B. Acceptance
C. Consideration
D. Intention to create legal relations
E. Privity of contract

Answer

E. Privity of contract

Explanation:
The doctrine of privity of contract establishes that only the parties involved in a contract can enforce or be bound by its terms. This principle prevents third parties from claiming rights or obligations under a contract to which they were not a party.

Tags: Contractual Rights, Legal Doctrine, Privity of Contract
Level: Level 1

Topic: Law of Contract
Series: NOV 2011

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