Privity of contract
A legal doctrine stating that contracts are only binding on parties to the contract.
Privity of contract limits the rights and obligations to the parties involved in a contract, preventing third parties from claiming benefits or enforcing terms. This doctrine protects contractual agreements from external interference, ensuring that only the involved parties have legal standing in disputes or claims.
Used in a sentence
Due to privity of contract, only parties involved can enforce the contract terms.
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