The doctrine of privity of contract holds that
AParties to a contract cannot enforce it once a third party benefits
BAnyone who benefits from a contract can sue on it
COnly parties to a contract can sue or be sued on it
DStrangers to the contract can enforce it at will
Answer & Solution
Correct answer: C. Only parties to a contract can sue or be sued on it
Tweddle v Atkinson (1861); Dunlop Pneumatic Tyre v Selfridge (1915). Indian law follows privity broadly, with judicial exceptions for trust beneficiaries, family arrangements (Khwaja Muhammad Khan v Husaini Begum, 1910) and acknowledgment. The Indian Contract Act does not expressly use the term but the rule is read in.
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