A Stranger To A Contract Cannot Sue But A Stranger To A Consideration Can Sue Comment

Monday 26th of March 2012 | By: Umar Admin | Views: 1111 | Comments: 0 | Rating: 3 Star Content3 Star Content3 Star Content3 Star Content3 Star Content |  

Advertisement

 

Though a stranger to consideration can sue because the consideration can be furnished or supplied by any person whether he is the promisee or not, but a stranger to a contract cannot sue because of the absence of privity of contract (i.e. relationship subsisting between the parties to a contract).

 

Exceptions:
The rule that a stranger to a contract cannot sue, is subject to the following exceptions.

 

(a) In Case of Trusts.

The beneficiary (i.e. the person for whose benefits the trust has been created) may enforce the Contract.

(b) Case of Family Settlement:

The person of whose benefit the provision is made under family arrangements may enforce the Contract.

(c) Acknowledgment:

The person who becomes an agent of third party by acknowledgment or otherwise, can be sued by such third party.

(d) Assignment of a Contract:

Where a benefit under a contract has been assigned, the assignee can enforce the contract subject to all equities between the original parties to the contract e.g. the assignee of an insurance policy.

 

Rate this Page:
  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Overall Ratings: 0 Stars - 1 Vote(s)
  • Add New Comment

    Name

      Please enter your name
    Email

      Please enter your email address
    Website

      Please enter your web address (Optional)
    Comments

      Please enter your highly valued comments
    Enter Code
     captcha
      Human verification code (Required)
       
  • Your Name

     (24th of October 2014)

    No comments have been posted on this page yet..... Be the first one to share your opinion!