Introduction: Why Privity of Contract Still Matters Today magine hiring a contractor to renovate your kitchen, only for their shoddy work to flood your neighbor’s apartment. Your neighbor is furious, but when they try to sue the contractor, the court dismisses the case. Why? Because your neighbor wasn’t part of the original contract—a legal principle called privity of contract. This centuries-old doctrine dictates who can enforce contractual rights, and its implications ripple through everyday life, from gift cards to construction projects. But is privity of contract still relevant in today’s interconnected world? Let’s unpack its history, exceptions, and modern-day impact. What Is Privity of Contract? Privity of contract refers to the legal relationship between parties who have entered into a contract. According to this principle, only those who are parties to a contract can sue or be sued on it. A third party, even if they benefit from the agreement, generally has no legal rights to enforce the contract or claim damages. The Classic Definition The rule was formally established in the 19th-century English case of Tweddle v Atkinson (1861), where the court held that a person not a party to a contract cannot sue to enforce it, even if the contract was made for their benefit. Another landmark case, Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd (1915), reiterated that consideration must flow from the promisee, and only a party to a contract has the right to enforce it. Privity of contract is a legal rule stating that only parties directly involved in a contract can enforce its terms or be held liable under it. Third parties—no matter how affected—typically can’t sue for breaches. The Classic Example: Chinnaya v. Ramayya (1882) In this early Indian case, an aged woman transferred property to her daughter under the condition that the daughter would pay an annuity to the woman’s brother. When the daughter failed to do so, the brother sued to enforce the promise. At first glance, it seemed he had no legal standing—after all, he wasn’t a party to the contract. However, the Madras High Court upheld his claim, recognizing that the contract was made for his benefit and that he had a right to enforce it. This case is a notable exception to the strict rule of privity in Indian law, demonstrating that Indian courts have, since the 19th century, shown a willingness to protect third-party rights when justice so demands. Why Privity Matters: Balancing Rights and Practicality At its core, privity of contract: Yet, critics argue it can create unjust outcomes. Imagine a hospital purchasing defective equipment that harms a patient. Under strict privity, the patient can’t sue the manufacturer—only the hospital can. Key Exceptions to the Privity Rule Although the doctrine seems rigid, modern legal systems have carved out important exceptions that allow third parties to enforce contractual rights under certain conditions. 1. Third Party Beneficiary Clauses In some contracts, a third party is explicitly named as a beneficiary. Many jurisdictions—including the UK post-1999 and the US under the Restatement (Second) of Contracts—allow third-party enforcement if the contract expressly provides for it. 💡 Example: If you purchase health insurance for a dependent child, they may have the right to claim benefits even though they didn’t sign the contract. 2. Trust of a Promise In Les Affreteurs Réunis v Leopold Walford (London) Ltd (1919), the court recognized that where a contract is made for the benefit of a third party, the promise may be enforceable if structured as a trust. 3. Agency An agent can enter into a contract on behalf of a principal. Here, the principal can enforce the contract even though they are not explicitly a party. 4. Collateral Contracts These are secondary agreements that accompany a main contract. Courts sometimes enforce collateral promises made to third parties. 🔍 Example: A builder guarantees a buyer about the quality of goods supplied by a manufacturer. If the goods are defective, the buyer may sue under a collateral contract. 5. Statutory Exceptions Privity of Contract in Indian Law: A Balanced Approach In Indian contract law, Section 2(d) of the Indian Contract Act, 1872 codifies the principle that only parties who provide consideration are privy to a contract. However, Indian courts have progressively interpreted the rule with greater flexibility. Judicial Trends in India In essence, while privity of contract is recognized, Indian courts do not let the principle stand in the way of justice. Real-World Implications: Why You Should Care The privity rule might seem abstract, but its consequences are real and widespread: 1. Online Shopping & Gift Purchases You buy a phone online and send it to a friend. It’s defective, but your friend can’t get a refund directly—because they aren’t a party to the purchase agreement. 2. Construction Contracts Sub-contractors and third-party suppliers often face difficulty enforcing terms unless contracts are drafted with exceptions. 3. Corporate Structures In mergers or multi-layered service agreements, identifying who has legal rights under a contract can determine the outcome of disputes. My Take: A Legal Principle Due for More Nuance As someone who has worked on commercial agreements, I’ve often seen how strict privity limits fairness. In one instance, I represented a client in a software licensing dispute, where the software was licensed to Company A but primarily used by Company B (its subsidiary). When bugs caused financial loss to Company B, they couldn’t sue directly. The workaround? We argued the existence of an implied agency relationship—and eventually won partial compensation. But this gray area could’ve been avoided with clearer provisions recognizing third-party users. Comparative Snapshot: How Other Jurisdictions Handle It Country General Rule Key Exceptions UK Strict rule (pre-1999) Contracts (Rights of Third Parties) Act, 1999 USA Recognized under Restatement rules Third-party beneficiary doctrine India Recognized under Indian Contract Act Case law–based exceptions (trust, agency, family) Australia Traditional rule applies Recognition through trust law, collateral contracts Singapore Based on UK law Contracts (Rights of Third Parties) Act, 2001 Conclusion: Evolving Doctrine in a Connected World The doctrine of privity of contract is a powerful reminder that legal rights stem from consent and participation. While this ensures contractual discipline, it can also lead to unfair results in today’s interconnected, commercial world. Fortunately, evolving judicial trends, statutes, and drafting practices

A Bachelor of Law (LLB) is such an academic achievement that opens many career doors. While many graduates drift towards a career in the traditional concept of legal roles, the versatility of an LLB degree goes much beyond courtrooms. This paper discusses various career opportunities available after obtaining your LLB, trying to establish how this degree may lead one down diverse and rewarding professional paths. 1. Legal Practice Private Practice Entering private practice is one of the most direct career routes available to any person having an LLB degree. You can work as a practicing solicitor or barrister representing clients in courts and for general advice on various legal matters. Specialisation in areas like criminal law, family law, or intellectual property law further enhances your career after your LLB. In-House Counsel Another dimension of option available for an LLB degree holder is to act as in-house counsel within a corporation. He acts as in-house counsel, providing legal advice on business transactions, ensuring regulatory compliance, and handling miscellaneous internal legal issues. One can apply the learned knowledge of the LLB into practice in the corporate world, using it as a viewfinder toward business and law operations. 2. Corporate Legal Advisor Corporate Governance An LLB degree is highly instrumental in corporate governance practice. You will be giving assurance to companies regarding compliance with the laws and other regulatory provisions for businesses. Your LLB will stand you in great stead when it comes to managing corporate compliance, drafting of contracts, and advising on mergers and acquisitions. Risk Management Another area that an LLB degree holder can specialise in is risk management. Your LLB course will help you sail through complex regulatory environments and devise strategies to prevent legal issues. 3. Public Policy and Advocacy Policy Advisor You can also pursue a career as a policy advisor with your LLB degree. A policy advisor is any government entity, non-profit organisation, or research institute aiming to make a difference in the way public policy is designed. Your LLB will equip you with analytical skills in the development and promotion of effective policies and legislative changes. Advocacy and Non-Profit Work A degree in LLB will be one way through which people who have a passion for social justice will follow a career in advocacy and in the non-profit area. The field includes working with organisations dealing with such causes as human rights, environmental protection, and educational reforms. Your LLB will be integral to forcing social positive change and speaking to key issues. 4. Legal Technology and Compliance Legal Tech Specialist This is a burgeoning field of legal technology that LLB graduates can get excited about. As such, in your capacity as a legal tech specialist, you will be developing technology solutions that make legal practices better. Your LLB expertise will come in handy in the conception and implementation of tools for legal research, case management, and E-Discovery. Compliance Officer The LLB degree is also advantageous in having a career as a compliance officer. The Compliance Officer sees to it that the organisation is in accordance with the laws and the rules and regulations laid down. Your legal knowledge will be very useful for managing compliance and protecting organisations from legal risk. 5. Academia and Legal Research Law Professor Those with an LLB degree can find this a very rewarding career in the academic sector: teaching legal professionals, conducting research, and contributing to scholarship in the law. Your LLB will represent a foundation for a career dedicated to the development of the future of legal education and the advancement of legal knowledge. Legal Researcher You will be able to work in-depth into problems involving the law, case law, and statutes with an LLB degree. Your research will be paramount in delivering valuable insight that informs legal practice and policy development. 6. Judiciary and Public Office Judicial Positions This is considered one of the most prestigious career paths available to an LLB holder: Becoming a judge means interpreting, then applying the law while presiding over court cases to ensure justice. This requires heavy experience and additional qualification, but it gives one the opportunity to have a great impact on serving and changing the legal system. Public Office Another challenging and rewarding career opportunity for LLB graduates is in public office. This category includes legislators, people working with government agencies, and even those who influence public policy and help in governing. Your LLB will lay a good foundation for your career in public service. 7. International Law and Diplomacy International Lawyer For a successful career in international law, an LLB degree is indispensable. International lawyers deal with the legal issues transcending national borders at all levels, from trade to human rights and treaties. In practice, you may work with an international organisation or any national government to address the global legal challenges with a view to promoting international cooperation.  Diplomat Another area that will attract those with an LLB is that of diplomacy. A diplomat represents his or her country in international relations and handles treaty negotiations, dispute resolution, and trade agreements. Your legal background will be appropriate in the maze of international legal frameworks.  The career prospects after having completed your LLB degree are very wide-ranging and versatile. Your options within legal practice, corporate law, public policy, legal technology, academia, and international diplomacy all have the LLB laying a solid groundwork for success. Your Bachelor of Legislative Law (LLB) can be utilised to find a job in any one of these areas that suits your interest and aspirations best, thereby maximising the use of legal education and expertise.