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DIRECTIONS for the question: Mark the best option: 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.
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.
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.
  • 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?
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DIRECTIONS for the question: Mark the best option: Principles: I. A t...
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 subagent.
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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.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.

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 As 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 As daughter a party to the contract?A. No. As daughter is not a party to the contract. The contract was formulated for As daughters benefit.B. No. The contract is between A and B. As daughter is a stranger to the contract.C. Yes. As daughters interest was involved. So she was a party to the contract.D. Yes. As the fixed deposit was in her name, As daughter was a party to the contract

Directions: Questions 17- 20 are based on a common set of Principles and Facts. Answer accordingly.Principle 1 – An action against violation of Fundamental Rights can only be brought against legislative or administrative actions of the state, and not against private actions.Principle 2- 'State‘ includes the Government of India, the Parliament, the state governments and legislatures, and all local and other authorities under the control of the government of India.Principle 3 – The fundamental right to equality entails that equals be treated equally.Principle 4 – No citizen shall on the grounds of caste (among other grounds), be ineligible for an office under the State.Principle 5 – Any law or action of the State that contravenes fundamental rights will be void to the extent of that contravention.Facts – Nirmala and Sitara are both civil servants who have served in different capacities for about twelve years now. Despite several transfers and changes in designation, they have continued to remain friends. One day, they both attend a stirring talk by a Dalit rights activist, and are so influenced by this talk, that they want to contribute to the Dalit movement in their capacity as civil servants. They decide to apply for managerial posts at the Department for Minority Affairs. Nirmala‘s application for the post was rejected on the grounds that she was Brahmin herself, and not eligible to manage the affairs of SCs and STs. Sitara‘s application for the post was rejected due to past animosity with Mr. Kapur, head of the Minority Affairs Department. Mr. Kapur, in a scathing email, informed her that she would not be considered for any post that required his approval. Nirmala and Sitara are both enraged by these rejections, and allege that their fundamental rights have been violated.Question: Suppose that the Government passes a law that mandates that only persons belonging to the SC/ ST communities can head those departments, would this law be valid?

Directions: Questions 17- 20 are based on a common set of Principles and Facts. Answer accordingly.Principle 1 – An action against violation of Fundamental Rights can only be brought against legislative or administrative actions of the state, and not against private actions.Principle 2- 'State‘ includes the Government of India, the Parliament, the state governments and legislatures, and all local and other authorities under the control of the government of India.Principle 3 – The fundamental right to equality entails that equals be treated equally.Principle 4 – No citizen shall on the grounds of caste (among other grounds), be ineligible for an office under the State.Principle 5 – Any law or action of the State that contravenes fundamental rights will be void to the extent of that contravention.Facts – Nirmala and Sitara are both civil servants who have served in different capacities for about twelve years now. Despite several transfers and changes in designation, they have continued to remain friends. One day, they both attend a stirring talk by a Dalit rights activist, and are so influenced by this talk, that they want to contribute to the Dalit movement in their capacity as civil servants. They decide to apply for managerial posts at the Department for Minority Affairs. Nirmala‘s application for the post was rejected on the grounds that she was Brahmin herself, and not eligible to manage the affairs of SCs and STs. Sitara‘s application for the post was rejected due to past animosity with Mr. Kapur, head of the Minority Affairs Department. Mr. Kapur, in a scathing email, informed her that she would not be considered for any post that required his approval. Nirmala and Sitara are both enraged by these rejections, and allege that their fundamental rights have been violated.Question: Can there be an action for violation of fundamental rights against the Department for Minority Affairs?

Directions: The question consists of two statements, one labelled as Principle(s) and the other as Facts. You are to examine the principle and apply it to the given facts carefully and select the best option.Principles:1: A proposal must be communicated to the other party which may be made by words or by conduct and performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of a proposal.2: Acceptance of contract can also be given impliedlyFacts: A fire broke out in Shima's house. Believing that she was entitled to the free service of Superman Fire Brigade (which he was not), she asked them to come within 30 minutes from the call. The Brigade service arrived within 30 minutes but by that time the services were not required. Shima denied paying the conveyance charges as per the company's terms and conditions.Decide.

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DIRECTIONS for the question: Mark the best option: 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.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.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.a)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?
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DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)A and Bb)B and Cc)D and Ad)D and CCorrect answer is option 'A'. Can you explain this answer?.
Solutions for DIRECTIONS for the question: Mark the best option: 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.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.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.a)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. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)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 DIRECTIONS for the question: Mark the best option: 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.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.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.a)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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