Multiple choice

Which of the following statements is true?

  1. There can be a stranger to a contract.

  2. There can be a stranger to a consideration.

  3. There can be a stranger to both contract & consideration.

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The doctrine of privity of contract provides that a person who is not a party to a contract cannot sue on it. Therefore, there can be no stranger to a contract - only parties to the contract can enforce it. However, consideration can move from a stranger to the contract - a third party can provide consideration even if they are not a party to the agreement. For example, a father promises to pay someone if they marry his daughter - the father is a stranger to the marriage contract but provides the consideration. This distinction is fundamental to contract law.

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