privity of contract

Privity of contract is the relationship that exists between two parties by virtue of their having entered into a contract. Privity of contract provides that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract.

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This concept incorporates the legal principle that a contract may not impose duties on a noncontracting party, nor may a noncontracting party claim any right or benefit as being guaranteed by the contract.