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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 6Question 29
    Easy1 markMultiple Choice
    The law of obligationsThe law of obligationsPrivity

    ACCA · Question 29 · The law of obligations

    Section A

    Which legal principle states that only the parties to a contract can sue or be sued on it?

    Answer options:

    A.

    Promissory estoppel

    B.

    Privity of contract

    C.

    Quantum meruit

    D.

    Caveat emptor

    How to approach this question

    Identify the term that describes the closed relationship between contracting parties.

    Full Answer

    B.Privity of contract✓ Correct
    The doctrine of privity of contract dictates that a contract cannot confer rights or impose obligations arising under it on any person except the parties to it. (Note: The Contracts (Rights of Third Parties) Act 1999 provides some exceptions).

    Common mistakes

    Confusing privity with other Latin maxims.
    Question 28All questionsQuestion 30

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

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