The Indian Contract Act clearly states that there cannot be a stranger to a contract. What does this exactly mean? And are there any exceptions? This is explained through the Doctrine of Privity of a Contract. Let us see. Doctrine of Privity of Contract The Indian Contract Act. 1872, allows the ‘ Consideration ‘ for an agreement to proceed from a third-party. However, a stranger (third-party) to consideration is different from a stranger to a contract. The law does not allow a stranger to file a suit on the contract. This right is available only to a person who is a party to the contract and is called Doctrine of Privity of Contract. Let’s understand this with the help of an example: Peter has borrowed some money from John. Peter owns a property and decides to sell it to Arjun. Arjun promises to pay John on behalf of Peter. However, if Arjun fails to pay, then John cannot sue since Arjun is a stranger to the contract. It is important to note that the Doctrine of Privity has excep...
Nudum Pactum The term ‘Nudum Pactum’ has been derived from Latin terminology which means a naked agreement. The adage denotes an agreement made without any consideration. As per law, a contract is only enforceable when it is inclusive of the basic requirement of consideration. Consideration is defined as a promise to pay money, valuable things, or any other perk as discussed by the parties engaged in the contract or agreement. Where there is no consideration that is a nudum pactum, and hence such a contract is neither enforceable nor valid. A nudum pactum might be made verbally or in writing. Since these agreements are unenforceable, they may not be pursued in court. This indicates that these agreements do not come under the categories of agreements that can lead to legal action. Such agreement may constitute a modification or exemption to an existing duty. The contract, on the other hand, is regarded as legitimate if it is sealed. Furthermore, some contracts,...
Fundamental Duties are enshrined under Part IVA, Article 51A of the Indian Constitution. Originally, the Constitution of India had no mention of Fundamental Duties. They were added through the 42nd Constitutional Amendment on the recommendations of the Swaran Singh Committee. The Fundamental Duties are inspired by the Constitution of the erstwhile USSR. Article 29(1) of the Universal Declaration of Human Rights states that: Everyone has duties to the community in which alone the free and full development of his personality is possible. Swaran Singh Committee The Swaran Singh Committee was set up to make recommendations on the need and importance of Fundamental Duties, which were felt during the national emergency of 1975-1977. The committee recommended the addition of a separate chapter regarding Fundamental Duties in the Constitution. The committee recommended the incorporation of eight Fundamental Duties. However, not all recommendations of the Swaran Singh Committee were acce...
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