Privity of contract under Indian Contract Act

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Privity of contract under Indian Contract Act

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.

 

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