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What does the doctrine of privity of contract generally mean for enforcement of contractual terms?

As a general rule, the parties to a contract can enforce its terms. Recognised exceptions include a beneficiary under a trust created by the contract. Whether a claimant is…

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What does the doctrine of privity of contract generally mean for enforcement of contractual terms?

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Answer and explanation

Correct answer A

As a general rule, the parties to a contract can enforce its terms. Recognised exceptions include a beneficiary under a trust created by the contract.

Whether a claimant is a party is distinct from whether the claimant provided the consideration personally.

Option feedback

Option A

Privity of contract generally confines enforcement to parties, subject to recognised exceptions.

Option B

Privity concerns legal standing and does not impose confidentiality.

Option C

Privity concerns who may enforce the agreement. It does not impose a universal written-form requirement.

Option D

Section 2(d) allows consideration to move from the promisee or another person. This is distinct from whether the claimant is a party.

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