Which of the following is the best description of 'privity of contract'?
A)A third party is entitled to bring an action to enforce a contract to which they are not a party if they have the consent of one of the parties to do so.
B)The parties to the contract are under an obligation not to disclose the details of the contract to third parties.
C)Only the persons who are parties to the contract can acquire rights and incur liabilities under it.
D)The parties to the contract are only obliged to comply with the terms of the agreement and are not obliged to do any more than this.

Question

Quizplus · Accepted Answer

Privity of contract refers to the legal doctrine that only the parties to a contract can acquire rights and incur liabilities under it. This means that third parties who are not parties to the contract cannot enforce its terms or sue for breach of contract. Only the parties to the contract have legal rights and obligations under it.

Which of the Following Is the Best Description of 'Privity