A stranger to the consideration can sue but a stranger to contract can...
Introduction:
In legal terms, a stranger refers to someone who is not a party to a contract or a consideration. The distinction between a stranger to consideration and a stranger to contract lies in their ability to enforce their rights in a court of law. While a stranger to consideration can sue to enforce a contract, a stranger to contract cannot sue for its breach. This principle is based on the doctrine of privity of contract, which governs the rights and obligations between parties to a contract.
Privity of Contract:
Privity of contract refers to the relationship that exists between parties to a contract. It establishes that only parties who are privy to a contract have the right to enforce its terms or seek remedies for its breach. This means that a person who is not a party to a contract generally cannot sue or be sued under that contract.
Stranger to Consideration:
Consideration is the exchange of something of value between parties to a contract, which typically takes the form of money, goods, or services. A contract requires consideration to be valid and enforceable. However, a stranger to consideration can still sue to enforce a contract if it is made for their benefit, even though they are not a party to the contract. This principle is known as the doctrine of privity of consideration.
For example, if A promises to pay B a sum of money for providing medical treatment to C, C can sue A to enforce the promise even though C is not a party to the contract between A and B. This is because the contract was made for C's benefit and C can claim the benefits under the contract.
Stranger to Contract:
A stranger to contract is someone who is neither a party to the contract nor a person who stands to benefit from it. As per the doctrine of privity of contract, a stranger to contract cannot sue for its breach or seek remedies under it. This means that even if the contract causes harm or loss to a stranger, they do not have the right to sue for damages or enforce the contract.
For example, if A and B enter into a contract for the sale of goods, and C, who is not a party to the contract, suffers a loss due to the defective goods, C cannot sue A or B for damages. C's relationship with A and B is too remote to establish privity of contract, and therefore, C does not have the legal standing to bring a lawsuit.
Conclusion:
In summary, the ability to sue and enforce a contract depends on whether a person is a stranger to consideration or a stranger to contract. A stranger to consideration can sue to enforce a contract if it is made for their benefit, whereas a stranger to contract cannot sue or seek remedies for its breach. This distinction is based on the doctrine of privity of contract, which governs the rights and obligations between parties to a contract.