Multiple choice

The Doctrine of Privity of Contract states that

  1. a contract cannot confer any right on one who is not a party to the contract, even though the very object of the contract may have been to benefit him

  2. a contract can confer right on one who is not a party to the contract, if the contract benefits him

  3. a contract always confers right on one who is not a party to the contract

  4. a contract can confer rights on strangers
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A Correct answer
Explanation

The Doctrine of Privity of Contract means only parties to a contract can enforce rights or obligations under it. A contract cannot benefit or bind strangers, even if the contract was intended to benefit them. This fundamental principle restricts contractual rights to actual signatories/parties.

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