Privity of contract - the rule (Parties)-FS Flashcards
(10 cards)
What is the doctrine of privity of contract?
It is the principle that only parties to a contract have rights or obligations under that contract, and thus only they can sue or be sued upon it.
Privity of Contract
A common law doctrine stating that a contract cannot confer rights or impose obligations on any person who is not a party to the contract.
Can a third party enforce a term of a contract they are not party to under common law?
No. A third party cannot enforce a term of a contract under the doctrine of privity unless specific statutory exceptions apply.
How is privity of contract connected to consideration?
A person cannot enforce a contract unless they have both
(1) provided consideration
(2) are a party to the contract.
Why couldn’t the groom enforce the promise in the classic case involving a marriage agreement?
Because he was not a party to the contract and had not provided consideration.
What is the legal consequence of a person not being party to a contract?
They have no legal standing to sue or enforce any rights under that contract.
Is there any circumstance where a third party might enforce a contract term?
Yes, under statutory exceptions such as the Contracts (Rights of Third Parties) Act 1999, which is not addressed in this lecture but is important for completeness.
Why is privity of contract often discussed alongside consideration in contract law?
Because both doctrines determine who may bring a claim under a contract and enforce its terms.
Does privity prevent a person from being sued if they are not a party to the contract?
Yes. A non-party cannot be held liable under a contract to which they are not a party.
Can the rights of a third party be enforced through any alternative legal doctrine?
Potentially through agency, trust, or assignment, though not under privity alone.
