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Direction: In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choices
Principles:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.
II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.
II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.
Facts: A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.
Q. Is A's daughter a party to the contract?
A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.
B. No. The contract is between A and B. A's daughter is a stranger to the contract.
C. Yes. A's daughter's interest was involved. So she was a party to the contract.
D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contract
B. No. The contract is between A and B. A's daughter is a stranger to the contract.
C. Yes. A's daughter's interest was involved. So she was a party to the contract.
D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contract
- a)A and B
- b)B and C
- c)D and A
- d)D and C
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Direction:In this section every question is appended with facts and pr...
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. The term "parties" may seem simple enough but there are situations where it may become doubtful as to exactly who the parties are and resultantly, who, in the eyes of the law should be liable or should be compensated in event of inevitable breaches that may occur from time to time.
The concept of privity is part of the bedrock called common law which was made up of the collective judicial decisions derived from court decisions. Today however the law has recognized that with the increasingly complex world of commerce there must be some changes to accommodate certain exceptions to the general rule and guarantee restitution to the aggrieved. Growing consumer rights questions including warranty claims have contributed to this amendment of approach.
Exceptions to General Rule of Privity:
Collateral Contracts: A collateral contract is one that accompanies the main contract between two parties. It is one involving either of them and a third party. A classic example of this happened in England in 1953 in the case of Shanklin Pier v. Detel Products Ltd. In this case Shanklin Pier (plaintiff) employed contractors to paint a pier. The contractors then instructed Detel Products to supply them paint. This instruction was given based on a statement made by the defendants to the plaintiffs that the paint would last for seven years. When after just three months the paint work fell apart, the plaintiff sued and was given the go ahead by the courts to proceed with the suit against the defendant because even though the main contract had been between the contractor and the defendant there was in existence a collateral contract between the plaintiff and the defendant guaranteeing seven years protection.
Multilateral Contracts: When a person joins an unincorporated association such as a club, it could be said that he has gone into a contractual relationship with other members even if he may not be aware of their identity and if the person only liaises with the secretary of the organization. In one case the courts decided that a competitor in a race contracted not only with the organizers but with other competitors.
Agency: The status and vicarious liability issues of an agent also create exceptions to the rule of privity. When an agent negotiates a contract between his principal and a third party, it is generally regarded as being between the principal and the third party. However there are situations where it is subject to question as to whether or not an agent acted on his own behalf or not. It may even reach new heights of complexity when an agent makes use of a sub-agent, spawning twin questions of whether or not the contract will now be between the principal and the sub-agent or the agent and the sub-agent.
The concept of privity is part of the bedrock called common law which was made up of the collective judicial decisions derived from court decisions. Today however the law has recognized that with the increasingly complex world of commerce there must be some changes to accommodate certain exceptions to the general rule and guarantee restitution to the aggrieved. Growing consumer rights questions including warranty claims have contributed to this amendment of approach.
Exceptions to General Rule of Privity:
Collateral Contracts: A collateral contract is one that accompanies the main contract between two parties. It is one involving either of them and a third party. A classic example of this happened in England in 1953 in the case of Shanklin Pier v. Detel Products Ltd. In this case Shanklin Pier (plaintiff) employed contractors to paint a pier. The contractors then instructed Detel Products to supply them paint. This instruction was given based on a statement made by the defendants to the plaintiffs that the paint would last for seven years. When after just three months the paint work fell apart, the plaintiff sued and was given the go ahead by the courts to proceed with the suit against the defendant because even though the main contract had been between the contractor and the defendant there was in existence a collateral contract between the plaintiff and the defendant guaranteeing seven years protection.
Multilateral Contracts: When a person joins an unincorporated association such as a club, it could be said that he has gone into a contractual relationship with other members even if he may not be aware of their identity and if the person only liaises with the secretary of the organization. In one case the courts decided that a competitor in a race contracted not only with the organizers but with other competitors.
Agency: The status and vicarious liability issues of an agent also create exceptions to the rule of privity. When an agent negotiates a contract between his principal and a third party, it is generally regarded as being between the principal and the third party. However there are situations where it is subject to question as to whether or not an agent acted on his own behalf or not. It may even reach new heights of complexity when an agent makes use of a sub-agent, spawning twin questions of whether or not the contract will now be between the principal and the sub-agent or the agent and the sub-agent.
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Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?
Question Description
Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?.
Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT.
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Here you can find the meaning of Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Direction:In this section every question is appended with facts and principles, and multiple-choice answers. You are required to read the facts carefully, then read the principles, apply the principles to the given facts and make a select one the option which is the most appropriate answer from the given choicesPrinciples:I. A third party or a stranger to the contract cannot enforce the terms and conditions of the contract.II. A party, for whose benefit the contract has been entered into, can sue the parties and get the contract enforced even if it is a stranger to the contract.Facts:A and B are partners of this firm. A and B entered into a contract that when A's daughter joins the firm, both A and B will create a fixed deposit in her name and contribute 5% of their monthly income to that account for six months. B fails to keep his end of the promise.Q. Is A's daughter a party to the contract?A. No. A's daughter is not a party to the contract. The contract was formulated for A's daughter's benefit.B. No. The contract is between A and B. A's daughter is a stranger to the contract.C. Yes. A's daughter's interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, A's daughter was a party to the contracta)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.
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