Business Studies, asked by teb8308, 2 months ago

Discuss the rule that a stranger to a contract cannot sue. Are there any exceptions to this

rule? Discuss.​

Answers

Answered by ishanikapoor217
17

Answer:

The expression “Privity of Contract” is a doctrine, which means stranger to a contract. It means that a person, who is not a party to the contract, cannot sue for carrying out the promise made by the parties to the contract. That is, a person who is not a party to the contract cannot enforce a contract

Answered by nidhighosh06sl
0

Answer:

Privity of a contract is the rule that a stranger to a contract cannot sue.

Explanation:

  • A stranger to a contract cannot sue.
  • Only a person who is a party to the contract can sue it, during the breach.
  • A person who is not a party to a contract is a stranger to the contract and cannot sue upon it even though the contract is made for its benefit.

Exceptions to Privity of contract:

"Third-party can sue and it is valid."

  1. Family settlement of contract i.e sister and brother.
  2. Official receiver in case of insolvency.
  3. Assignment of contract under The transfer of property act
  4. Contract with an agent it will result in a sue to principle.
  5. Express or implied i.e. grandfather and granddaughter in case granddaughter is still small grandfather can give responsibility to her relatives and relatives is the third party and can sue,

#SPJ2

Similar questions