ExpertEasy1 markMultiple Choice
ACCA · Question 29 · The law of obligations
Section A
Which legal principle states that only the parties to a contract can sue or be sued on it?
Section A
Which legal principle states that only the parties to a contract can sue or be sued on it?
Answer options:
A.
Promissory estoppel
B.
Privity of contract
C.
Quantum meruit
D.
Caveat emptor
How to approach this question
Identify the term that describes the closed relationship between contracting parties.
Full Answer
B.Privity of contract✓ Correct
The doctrine of privity of contract dictates that a contract cannot confer rights or impose obligations arising under it on any person except the parties to it. (Note: The Contracts (Rights of Third Parties) Act 1999 provides some exceptions).
Common mistakes
Confusing privity with other Latin maxims.
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