Contracts for the benefit of a group where a contract to supply a service is made in one persons name but is intended to sue at common law if the contract is breached there is no privity of contract between them and the supplier of the service. Privity of contract the relationship between the parties privy to the contract ie those who are direct parties to it until the passing of the contracts rights of third parties act 1999 english law did not permit parties not in a relationship of privity to sue on a contract. The legal definition of privity of contract is a doctrine of contract law that prevents any person from seeking the enforcement of a contract or suing on its terms unless they are a party to that contract. Definition of privity of contract legal doctrine that a contract confers rights and imposes liabilities only on its contracting parties they and not any third party can sue each other or be sued under the terms of the contracts. Privity of contract is a legal doctrine that holds that a business contract along with any other type of contract may not confer rights or impose obligations to any person or agent except for the specific parties that have formed the contract
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