privity of contract
Agreement binds parties
Privity of contract is the legal principle that only parties to a contract can enforce its terms or be bound by its obligations.
A third party cannot sue for breach even if harmed by it: The homeowner couldn't sue the subcontractor directly because there was no privity of contract between them.
Modern exceptions allow some third-party beneficiaries to enforce contracts made for their benefit.
- legal doctrineEstablished rule of law
- offerProposal to provide
- contractorHired construction professional
- assigneeRecipient of transferred rights
- delegateeOne given authority
beneficiary · damages · stranger · privies · acceptance · consideration · arm's length · meeting of minds · breach · guarantor · enforceability · sue · third-party · estate · binding · agreement · mutuality · relationship