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contract act 1872 ..sorry other than companies act

Raghav Maheshwari (26 Points)

09 February 2018

meaning of privity of contract

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nihanth reddy (CA Student) (93 Points)
Replied 09 February 2018

The doctrine of privity of contract is that a contract cannot confer rights or impose those obligations arising under it, on any person except the parties to it.

Example:If A makes a contract with B, he comes under a legal obligation to pay damages if he fails to keep his promise. The enforceability or liability as regards this contract lies firmly in the hands of A and B to the exclusion of others, this is the foundation of the doctrine of privity of contract.