Privity of contract under Indian Contract Act
In contract law, the concept of privity of contract refers to the legal relationship between the parties who have entered into a contract. It refers to the fact that only the parties who have entered into a contract can enforce the terms of that contract. This means that a third party cannot enforce the contract or be sued for a breach of contract.
Privity of contracts is an essential concept under the Indian Contract Act, 1872. Section 2(d) of the Act defines a contract as an agreement that is enforceable by law. This means that only parties to a contract have the right to enforce it, and no third party can claim a right under it.
Under Indian law, the doctrine of privity of contract is a well-established principle. The Act recognizes that only parties to a contract are bound by its terms and are entitled to its benefits. The principle of privity of contract means that no person can acquire any rights under a contract to which he is not a party.
The doctrine of privity of contract is a fundamental principle in contract law that governs the rights and obligations of parties to a contract. It means that only the parties to a contract can enforce the terms of that contract.
This principle ensures that the contract remains a private agreement between the parties and cannot be enforced by anyone else who is not a party to the contract. Therefore, a third party who has not entered into a contract cannot enforce the terms of that contract.