Monday, March 5, 2012

Law of contracts

“If there is one thing which more than another, public policy requires, it
is that men of full age and competent understanding shall have the
utmost liberty of contracting and that contracts when entered into freely
and voluntarily shall be held sacred and shall be enforced by courts of
justices” - Sir Goerge Jessel, MR

The law would not permit a contract to impose a duty or confer a benefit
on a person who is not a party to it. The reason is that agreement or a
bargain is private to parties to it. The doctrine of privity of contract is
not about what may be necessary to form a contract nor is it concerned
about the contents of a contract. Its concern is “who can enforce a
contract”. In the law of contract, certain principles are fundamental.
One is that only a person who is a party to a contract can sue on it. Ourlaw knows nothing of a jus quaesitium tertio arising by way of contract.It has no room for a busy body.