Nishant Kumar, Hidayatullah National Law University
Privity of contract proscribes third parties or stranger to sue upon a contract to enforce it. It says that only party to contract can sue for the enforcement of the contract. The clause is considered to be rigid by some of the jurists and became inclusive over the period of time. In India courts have adopted some exceptions under which a party who is stranger to the contract can also be allowed to enforce the contracts for his benefits. However the stance in English law is somewhat rigid as compared to India. In England privity is applicable on the consideration also which means that only party to contract can furnish the consideration. Contract for the benefits of third party is one of the exceptions where a third party for whose benefits contract is made can enforce his claim. There are some other exemptions which give the right to third party for the enforcement of the contract.