The Doctrine of Privity of Contract Means MCQ: Understanding the Basics
The doctrine of privity of contract is an important concept in contract law that defines the relationship between parties to a contract. As a copy editor, it is essential to understand the basics of this doctrine to ensure that any content related to contract law is accurate and informative. So, let`s dive into the fundamental concepts of the doctrine of privity of contract with the help of multiple-choice questions (MCQs).
1) What is the doctrine of privity of contract?
a) It is a legal principle that governs the relationship between the parties to a contract.
b) It is a legal principle that governs the relationship between the parties to a contract and third parties.
c) It is a legal principle that governs the relationship between third parties to a contract.
Answer: b
Explanation: The doctrine of privity of contract governs the relationship between the parties to a contract and third parties. It means that only the parties who have entered into a contract can enforce or be bound by it.
2) What is the significance of the doctrine of privity of contract?
a) It ensures that the parties to a contract have legal rights and obligations.
b) It protects the interests of third parties who may be affected by a contract.
c) It restricts the enforcement of a contract to the parties who are involved in it.
Answer: c
Explanation: The doctrine of privity of contract restricts the enforcement of a contract to the parties who are involved in it. It means that third parties cannot sue or be sued under the terms of a contract, even if they are affected by it.
3) What are the exceptions to the doctrine of privity of contract?
a) Assignment and delegation.
b) Collateral contract.
c) Both of the above.
Answer: c
Explanation: The exceptions to the doctrine of privity of contract are assignment and delegation of rights and duties and collateral contracts. In the case of an assignment, one party transfers its rights or obligations to another party. In the case of a collateral contract, a third party enters into a separate agreement with one of the parties based on the terms of the original contract.
4) What is the difference between an assignment and a delegation?
a) An assignment transfers rights, whereas a delegation transfers duties.
b) An assignment transfers duties, whereas a delegation transfers rights.
c) An assignment and a delegation transfer rights and duties, respectively.
Answer: a
Explanation: An assignment transfers rights from one party to another party, whereas a delegation transfers duties from one party to another party.
5) What is a collateral contract?
a) A separate agreement between two parties based on the terms of the original contract.
b) A contract between the parties who are involved in the original contract.
c) A contract between a party to the original contract and a third party who is not bound by the original contract.
Answer: a
Explanation: A collateral contract is a separate agreement between two parties based on the terms of the original contract. It is an exception to the doctrine of privity of contract that allows a third party to enforce a contract if they can prove that a separate agreement exists between them and one of the parties to the original contract.
In conclusion, the doctrine of privity of contract is a fundamental concept in contract law that governs the relationship between parties to a contract and third parties. As a copy editor, understanding the basics of this doctrine is vital to ensure that any content related to contract law is accurate and informative. By using MCQs, we hope to have provided a simple and effective means of understanding the core principles of this important legal principle.
