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Privity of contract

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Definition Edit

The doctrine of privity in contract refers to "[a] direct contractual relationship between the parties."[1]

Overview Edit

The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages. However, the doctrine has proven problematic due to its implications upon contracts made for the benefit of third parties who are unable to enforce the obligations of the contracting parties.

References Edit

  1. Defense Acquisition University, Glossary, at B-137 (13th ed. Nov. 2009) (full-text).


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