Question

Is a "Stranger to a contract" entitled to sue under Indian law?

• A. Yes, always
• B. No, never
• C. Yes, in all cases of consideration
• D. No, except in certain exceptional cases

Hint:

Privity of Contract: Stranger cannot sue, but remember key exceptions (trust, family arrangement, assignment).

Answer 1

The Correct Option is D

Concept: The doctrine of privity of contract states that only parties to a contract can sue or be sued on it. A stranger to a contract cannot enforce it.
Step 1: Understanding the general rule.
Under Indian law, only the parties to a contract have the right to enforce it. Therefore, a stranger to a contract cannot sue.
Step 2: Exceptions to the rule.
There are certain exceptions where a stranger can sue, such as:

• Trust or beneficiary cases
• Family settlements
• Acknowledgment or estoppel
• Assignment of contract

Step 3: Conclusion.
Thus, while the general rule denies the right, exceptions allow enforcement in specific situations.