When an agent enters into a contract on behalf of a principal and this matter is fully disclosed there is privity of contract between the principal and the third-party, true or false?

Question

Social Studies

Tristian Ellis

29 October, 22:57

When an agent enters into a contract on behalf of a principal and this matter is fully disclosed there is privity of contract between the principal and the third-party, true or false?

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Answers (1)

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Maxim Livingston · Answer 1

Privity of contract provides a relation between the parties to contract and restricts third party from entering.

Explanation:

This statement is False as a contract is no more private if it is disclosed to any other third party. As legal rights and obligations are imposed between parties, agent is not beneficial from contract. This doctrine of privity of contract prevents any third party from entering and enforcing some other person's rights in contract.