Wednesday, August 12, 2015

CONTRACT:the burning issue of privity of contract

The doctrine of privity of contract portrays that as a general rule a contract affects only the parties thereto and cannot be enforced by or against a person who is not a party to it.The doctrine stipulates that only parties to a contract can sue or be sued on the contract and a stranger to a contract can neither sue for his benefitand purports to give him the right to sue or make him liable upon it.Morever the fact that a person who is a stranger to the consideration of a contract stands in such a near relationship to the party from whom the consideration proceeds that he may be considered a party to the consideration does not entitle him to sue or be sued upon the contract.Though the doctrine of privity of contract admits exceptions