A contracting party's transfer of the contract rights or duties to another person is an exception to the rule of privity of contract.

Question

Quizplus · Accepted Answer

The rule of privity of contract states that only parties to a contract are bound by it and can enforce its terms. However, a contracting party can transfer their rights or duties under the contract to another person (through assignment or delegation), which is an exception to this rule, allowing non-parties to become involved in the contract's benefits or obligations.

A Contracting Party's Transfer of the Contract Rights or Duties