Privity of Contract versus Jus Quaesitum Tertio
By
Dr. Miss Himanshu Bhatia
A contract is in root analysis an agreement between two or more persons. The agreement arises by one of the parties making an offer and its acceptance by the other party. The person making offer or proposal is the promisor and the person accepting it is the promisee. To make the promise binding on the promisor there should be consideration for it. In English Law it is well settled that consideration must move from promisee only but in India it may proceed from promisee or any other person. This other person is known as third party. Here, the question is that who can bring an action on the basis of a contract ? Whether only parties to the contract are entitled for such action or whether a third party too has right of judicial action under a contract ? The two doctrines i.e. Privity of contract and Jus Quaesitum Tertio are inconsistent in their nature.
Privity of Contract
Privity of contract is said to exist between two persons when there is a ....