What does privity of contract mean?
Privity of Contract refers to relationship between the parties to a contract which allows them to sue each other but prevents a third party from doing so. As a general rule, a contract cannot confer rights or impose obligations arising under it on any person except the parties to it.Click to see full answer. Besides,…
Privity of Contract refers to relationship between the parties to a contract which allows them to sue each other but prevents a third party from doing so. As a general rule, a contract cannot confer rights or impose obligations arising under it on any person except the parties to it.Click to see full answer. Besides, what is privity of contract and why does it matter?The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such.One may also ask, what are the exception of privity of contract? The principle helps to protect third parties to a contract from lawsuits arising from that contract. There are some exceptions to the privity principle and these include contracts involving trusts, insurance companies, agent-principal contracts, and cases involving negligence. Besides, what does it mean to be in privity of contract? Privity of Contract refers to relationship between the parties to a contract which allows them to sue each other but prevents a third party from doing so. As a general rule, a contract cannot confer rights or impose obligations arising under it on any person except the parties to it.What does lack of privity mean?Lack of privity states that there is no contract between parties, thereby not requiring them to perform certain duties and not entitling them to certain rights.
