Discuss the rule that a stranger to a contract cannot sue. Are there any exceptions to this
rule? Discuss.
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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
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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."
- Family settlement of contract i.e sister and brother.
- Official receiver in case of insolvency.
- Assignment of contract under The transfer of property act
- Contract with an agent it will result in a sue to principle.
- 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,
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