What is the doctrine of privity?

The doctrine of privity is a legal concept that states that only the parties involved in a contract can bring a lawsuit to enforce the contract. This means that any third parties, or non-parties, to the agreement are not allowed to enforce the contract. Privity of contract, as the doctrine is also known, is based on the principle that only those who have expressly consented to an agreement or contract are bound to its terms. In Texas, this doctrine is governed by the Texas Business and Commerce Code, which states that “a promise or agreement is not enforceable by or on behalf of a person who is not a party to the promise or agreement.” This means that only those who have actually signed the contract or given their authorization to be party to the contract are allowed to enforce the contract’s terms. The doctrine of privity helps protect not only parties to a contract but also organizations and individuals who may be subject to the contract’s terms. For example, if an individual purchases a product from a company, the company cannot take legal action against the individual if the individual fails to pay for the product, because the individual is not a party to the contract between the individual and the company. The doctrine of privity is an important concept of contract law in Texas and all jurisdictions. It helps protect parties from unexpected legal action from third parties, and it also helps protect organizations and individuals from being held liable for contracts they did not sign.

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