Explain the legal provisions and implications of the doctrine of 'privity of contract'. Provide examples to illustrate your answer.
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Indian Contract Act, 1872SubjectiveQuestion 5801 of 6
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Detailed Solution & Explanation
The doctrine of privity of contract is a fundamental concept in contract law, which states that a contract only creates rights and obligations between the parties to the contract. This means that a contract cannot be enforced by or against a person who is not a party to the contract. The Indian Contract Act, 1872, provides that a contract is not enforceable by or against a person who is not a party to the contract (Section 2(d)). For example, if A enters into a contract with B to provide a service to C, C cannot enforce the contract against A, as C is not a party to the contract. However, there are some exceptions to this doctrine, such as when a contract is made for the benefit of a third party, or when a contract is novated or assigned to a third party.
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