Multiple choice

The doctrine of privity of contract means that

  1. a contract is a private affair between the parties

  2. consideration can be supplied only by the parties to contract

  3. the contract can be enforced only by a civil and private action

  4. only parties to contract can sue and be sued upon the contract
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The doctrine of privity of contract means that only parties to the contract can enforce its terms or be sued under it. Third parties cannot enforce contractual rights even if the contract benefits them. This protects the freedom to contract and limits liability to those who agreed to be bound.

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