What is the doctrine of privity?

The doctrine of privity is a legal concept in contract law that states a contract is binding only between the two parties involved in the agreement and that neither party can enforce or be held liable for obligations under the contract with a third party. In other words, the third party cannot take legal action against either party to the contract for any breach of duty or obligation. Under the doctrine of privity, North Carolina courts have held that contracts can only be enforced by those who are parties to the agreement. The non-contracting party has no rights or obligations to the agreement and has no standing to sue either party for breach of contract. Furthermore, the non-contracting party does not have the right to enforce the contract either, even if they are indirectly affected by it. The doctrine of privity is an important concept in contract law because it prevents third parties from trying to make a claim on a contract that they were not a part of. This helps to ensure that the parties to the agreement are held responsible for their obligations and that no third-party can be held liable for any breach of duty under the contract.

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What is the doctrine of privity?

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