New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    What does the doctrine of Privity of contract

    mean?
    A Stranger to a contract can sue to get it enforced Correct Answer Incorrect Answer
    B Stranger to a contract cannot sue to get it enforced Correct Answer Incorrect Answer
    C Only those who are parties to a contract are bound by its terms and can enforce the contractual obligations under it Correct Answer Incorrect Answer
    D Both a & c Correct Answer Incorrect Answer
    E Both b & c Correct Answer Incorrect Answer

    Solution

    Doctrine of Privity is a common law principle which implies that only parties to a contract are allowed to sue each other to enforce their rights and liabilities and no stranger can sue to get the contract enforced. In exceptional cases strangers to a contract can sue if they are beneficiary.

    Practice Next