A contract is an agreement between two or more parties that the law can enforce. It happens when one person makes an offer, and the other person accepts it. For it to be a contract, there must be something valuable exchanged, called consideration, like money, services, or promises.

Definition: According to Section 2(h) of the Indian Contract Act, 1872, "An agreement enforceable by law is a contract."

In simple words:

• Agreement = Offer + Acceptance.
• Contract = Agreement + Legal enforceability.

1. Legal Relationship:
   • A contract creates a legal obligation between the parties. Social or personal agreements, like going to dinner, don’t count because they lack legal intent.
   • Example: If two friends agree to go to a movie but one doesn’t show up, it’s not a contract because it’s not legally enforceable.
2. Free Consent:
   • Both parties must willingly agree without pressure, fraud, or mistakes.
3. Lawful Object:
   • The purpose of the contract must be legal. Agreements for illegal acts are not valid.
   • Example: A contract to smuggle goods is not valid.
4. Capacity to Contract:
   • The parties involved must be legally able to enter into a contract. Minors, mentally unstable people, and others disqualified by law cannot form valid contracts.
5. Consideration:
   • Something of value must be exchanged between the parties.
6. Certainty:
   • The terms of the contract must be clear and not vague.
   • Example: An agreement to decorate a room in an "ultra-modern" way is void because "ultra-modern" is unclear.
7. Possibility of Performance:
   • The contract must involve actions that are possible to perform.
   • Example: An agreement to fly to the moon without technology is void because it's impossible.

The development of contract law has evolved over centuries, shaped by various legal systems and societal needs. Below is a simplified explanation of the historical background:

1. Ancient Roots

• Roman Law:
  • Early contract principles emerged from Roman law, which introduced concepts like agreements, obligations, and enforcement.
  • Roman law classified contracts into specific types (e.g., sale, lease, partnership), each with its rules.
• Hindu and Islamic Law in India:
  • Indian societies had informal systems to handle agreements based on customs and religious principles.

2. English Influence

• English Common Law:
  • Before the codification of laws, England followed common law based on judicial decisions and precedents.
  • English common law focused on fairness and included basic elements like offer, acceptance, and consideration.
• Introduction to India:
  • During British rule, English Contract Law was applied in India to regulate trade and commerce.
  • This introduced systematic contract principles in India.

3. Codification in India

• Indian Contract Act, 1872:
  • Before this, English contract law was followed.
  • The Indian Contract Act was enacted on 1st September 1872, marking the first codified contract law in India.
  • It aimed to create a comprehensive and clear set of rules for agreements enforceable by law.

4. Key Features of the Indian Contract Act, 1872

• Divided into two parts:
  • General Principles: Covers the basics of all contracts (Sections 1–75).
  • Special Contracts: Deals with specific types like indemnity, guarantee, bailment, pledge, and agency (Sections 124–238).
• The Act replaced customary practices with a formalized legal framework.

5. Post-Independence Development

• After India gained independence, the Indian Contract Act remained the primary law governing contracts.
• Judicial interpretations and amendments have modernized the law to address contemporary issues.

Summary: Contract law has its roots in ancient practices but was significantly shaped by English law during British rule. The Indian Contract Act, 1872, is a landmark codification that serves as the foundation of contract law in India today.

The Indian Contract Act, 1872 provides essential terms and definitions related to contracts. These are found mainly in Section 2 of the Act:

1. Proposal or Offer [Section 2(a)]

• When one person shows their willingness to do or not do something to get another person’s agreement, it is called a proposal or offer.
• Example: Ramesh offers to sell his car to Suresh for ₹2 lakhs.

2. Acceptance [Section 2(b)]

• When the person to whom the proposal is made agrees to it, the proposal becomes accepted.
• Example: Suresh accepts Ramesh’s offer to buy the car.

3. Promise [Section 2(b)]

• When a proposal is accepted, it becomes a promise.
• Example: Ramesh promises to sell his car, and Suresh promises to buy it.

4. Promisor and Promisee [Section 2(c)]

• The person who makes the promise is called the promisor, and the person who accepts the promise is the promisee.
• Example: In the above case, Ramesh is the promisor, and Suresh is the promisee.

5. Consideration [Section 2(d)]

• Consideration is "something in return" for the promise. It can be an act, abstinence, or promise made by one party at the request of the other.
• Example: Suresh pays ₹2 lakhs for the car; this payment is the consideration for Ramesh's promise to sell the car.

6. Agreement [Section 2(e)]

• An agreement is every promise or a set of promises with consideration for each other.
• Formula: Agreement = Offer + Acceptance.

7. Contract [Section 2(h)]

• A contract is an agreement enforceable by law.
• Formula: Contract = Agreement + Enforceability by Law.

8. Void Agreement [Section 2(g)]

• An agreement not enforceable by law is called a void agreement.
• Example: An agreement to smuggle goods is void.

9. Voidable Contract [Section 2(i)]

• A contract enforceable by law at the option of one party but not the other is called a voidable contract.
• Example: A contract made under coercion or fraud.

10. Void Contract [Not defined directly but explained in Section 2(j)]

• A contract that was enforceable but ceases to be enforceable due to certain circumstances becomes a void contract.
• Example: A contract to deliver goods becomes void if those goods are destroyed.

These definitions form the foundation of contract law, helping parties understand their rights and obligations.

For a contract to be valid under the Indian Contract Act, 1872, it must satisfy the following essential elements:

1. Offer and Acceptance

• A valid contract requires a clear offer by one party and acceptance by the other.
• Both must agree to the same thing in the same sense (consensus ad idem).
• Example: A offers to sell his bike to B for ₹50,000, and B agrees.

2. Intention to Create Legal Relationship

• The parties must intend to enter a legal relationship. Social or personal agreements are not enforceable.
• Example: An agreement to go out for dinner is not a contract because it lacks legal intent.

3. Lawful Consideration [Section 2(d)]

• There must be something of value exchanged between the parties (money, goods, services, or promises).
• Consideration must be lawful, not immoral or illegal.
• Example: A pays ₹5,000 to B for repairing his car; this is lawful consideration.

4. Capacity of Parties [Section 11]

• Parties entering a contract must be legally capable:
• Age of Majority: 18 years or older.
• Sound Mind: Able to understand the contract.
• Not Disqualified by Law: Insolvents, alien enemies, etc., cannot enter into contracts.
• Example: A minor’s agreement to buy property is void.

5. Free Consent [Section 13 & 14]

• Consent of the parties must be free and not obtained through:
• Coercion
• Undue Influence
• Fraud
• Misrepresentation
• Mistake
• Example: If someone is forced to sign a contract, it is voidable at their option.

6. Lawful Object [Section 23]

• The purpose of the contract must be legal and not against public policy.
• Example: A contract to smuggle goods is void because it involves an illegal act.

7. Certainty of Terms [Section 29]

• The terms of the contract must be clear and not vague.
• Example: A contract to supply "some goods" is void because "some" is uncertain.

8. Possibility of Performance

• The contract must involve actions that are possible to perform.
• Example: A contract to bring back a person from the dead is void because it’s impossible.

9. Not Declared Void

• The contract should not fall under agreements expressly declared void by the Act, such as:
• Agreements without consideration
• Agreements in restraint of marriage or trade
• Wagering agreements

10. Compliance with Legal Formalities

• If the law requires certain formalities like writing, registration, or stamping, they must be fulfilled.
• Example: A lease agreement for more than one year must be in writing and registered.

Summary

• Offer + Acceptance
• Legal Intent
• Lawful Consideration
• Free Consent
• Lawful Object
• Capacity
• Certainty
• Possibility of Performance

By ensuring these conditions, the contract becomes legally enforceable.

Forms of Proposal and Acceptance

1. Proposal (Offer) [Section 2(a)]:

• Express Offer: Made through spoken or written words.
• Example: "I will sell my car to you for ₹2 lakhs."
• Implied Offer: Inferred from actions or circumstances.
• Example: Taking a taxi implies you'll pay the fare.

2. Acceptance [Section 2(b)]:

• Express Acceptance: Clear acceptance by words.
• Example: "I agree to buy your car."
• Implied Acceptance: Acceptance through actions.
• Example: Paying for an item at a store implies you accept the price.

1. Communication of Offer and Acceptance

What it Means:

• Communication ensures that both parties know about the offer and acceptance.
• Until the communication is complete, there is no valid agreement.

Rules for Communication:

• Offer Communication: The offer is valid only when it is communicated to the offeree.
• Example: A proposes to sell his bike to B through a letter. The offer is valid when B receives the letter.
• Acceptance Communication: Acceptance must be communicated to the offeror. Silence is not acceptance.
• Example: If B simply stays silent after reading the letter, it does not count as acceptance.

Key Case:

• Lalman Shukla v. Gauri Dutt: A servant couldn’t claim a reward for finding a missing child because he was unaware of the reward offer when he started the search.

2. Revocation of Offer and Acceptance

What is Revocation?

• Revocation means withdrawing an offer or acceptance before it becomes binding.

Rules for Revocation [Section 5]:

• Offer Revocation: An offer can be revoked anytime before the communication of its acceptance is complete.
• Example: A offers to sell his car to B and decides to withdraw the offer before B accepts. This is valid.
• Acceptance Revocation: Acceptance can be revoked anytime before the communication of acceptance reaches the offeror.
• Example: If B accepts A’s offer through a letter but changes his mind and sends a revocation before the letter reaches A, it is valid.

When Revocation is Complete [Section 4]:

• For the Offeror: When the revocation is sent.
• For the Offeree: When the revocation is received.

Key Case:

• Byrne v. Van Tienhoven: An offer was revoked after the acceptance was communicated. The court held the revocation invalid as it was sent after the acceptance.

3. Intention to Create Legal Relationship

What it Means:

• The parties must intend to enter into a legally binding agreement.
• Social or domestic agreements (e.g., family or friendship promises) are generally not legally enforceable because they lack such intention.

Rules:

• Social or Domestic Agreements: Presumed not to have legal intent unless proven otherwise.
• Example: A promise between friends to meet for coffee is not a contract.
• Case: Balfour v. Balfour – A husband’s promise to give his wife a monthly allowance was held unenforceable.
• Commercial Agreements: Presumed to have legal intent.
• Example: A contract between a seller and buyer to deliver goods.

Key Features:

• Agreements with legal consequences show intent.
• Agreements that are mere promises or jokes are not contracts.

• Key Point: Performance of impossible contracts.
• What Happened: In this case, a contract required the performance of certain obligations, but those obligations became impossible due to unforeseen circumstances.
• Example: A contract for renting a hall that burns down before the event occurs.
• Main Issue: Is a contract valid if performance becomes impossible after it is made?
• Important Law: If performance becomes impossible, the contract is void.
• Outcome: The court ruled that the contract was void due to impossibility.

• Key Point: A statement of price is not an offer.
• What Happened: Harvey asked Facey via telegram if he would sell a property and requested the lowest price. Facey replied with "£900." Harvey assumed this was an offer and sent a message agreeing to buy at that price. Facey refused to sell.
• Main Issue: Does quoting a price in response to a query constitute an offer?
• Important Law: A reply stating the price is not an offer but an invitation to treat. Therefore, no contract was formed as there was no intention to create legal relations.
• Outcome: The court ruled that quoting a price did not amount to an offer.

According to Section 10 of the Indian Contract Act, 1872:

"All agreements are contracts if they are made:

1. By free consent of the parties involved,
2. By competent parties who can legally contract,
3. For a lawful consideration (something valuable exchanged), and
4. With a lawful object (the purpose of the agreement must be legal).

"

• The agreement must not be declared void by the law.
• An agreement becomes a contract only if it is enforceable by law.

In simple terms:

• An agreement is a contract when it follows the law, is made without cheating or forcing anyone, and involves capable people with a clear, legal purpose.
• Example: If Ramesh agrees to sell his bike to Suresh for ₹10,000, and both agree willingly, this is a valid contract.

• 1. Agreement is Void:
• A minor’s agreement is void-ab-initio (void from the beginning).
• Case: Mohiri Bibee v. Dharmodas Ghose (1903) established that contracts with minors are invalid and cannot be enforced.
• 2. No Estoppel Against a Minor:
• Even if a minor misrepresents their age, they cannot be held liable in contract law.
• 3. No Specific Performance:
• Courts cannot enforce specific performance of an agreement involving a minor.
• 4. Minor as Beneficiary:
• A minor can accept benefits under a contract (e.g., gifts, scholarships).

1. Khan Gull v. Lakha Singh (1928) 9 Lah 701

• Key Point: A minor cannot be held liable for a contract, even if they misrepresent their age.
• What Happened: A minor lied about his age and entered into a contract to sell land. He later refused to honor the deal. The court ruled that the contract was void due to his minority, even though he had misrepresented his age.
• Main Issue: Can a minor be held liable for a contract if they lied about their age?
• Important Law: Section 11 of the Indian Contract Act states that minors are not competent to contract.

2. Ajudhia Prasad v. Chandan Lal (1937) All 860

• Key Point: Courts cannot enforce repayment of money in void contracts involving minors.
• What Happened: A minor misrepresented his age and took a loan. The lender sued for repayment. The court held that minors' agreements are void, and restitution is limited to returning property if traceable, not money.
• Main Issue: Can a lender recover money loaned to a minor?
• Important Law: Section 65 of the Indian Contract Act does not apply to void contracts with minors.

3. Jagar Nath Singh v. Lalta Prasad (1908) 31 All 21

• Key Point: Contracts with minors are void and cannot be enforced.
• What Happened: A minor entered into a property agreement under the influence of his uncle. The court declared the agreement void, protecting the minor from any liability.
• Main Issue: Are contracts involving minors enforceable if influenced by a guardian or relative?
• Important Law: Indian law prioritizes protecting minors from being exploited through contracts.

4. Jennings v. Rundall (1799) 9 TR 335

• Key Point: A minor cannot be sued in tort if the claim arises from a contract.
• What Happened: A minor rented a horse for a short trip but used it for a longer journey, injuring the horse. The court ruled that since the issue arose from a contract, the minor could not be held liable in tort.
• Main Issue: Can a minor be held liable in tort for an action arising out of a contract?
• Important Law: Tort claims cannot bypass the protection minors have from contractual liability.

5. Raj Rani v. Prem Adib (1949) 51 Bom LR 256

• Key Point: Contracts involving minors or made on their behalf are void and unenforceable.
• What Happened: A minor’s father entered a contract with a film producer for her to act in movies. The producer failed to honor the contract, and the minor sued. The court ruled that the contract was void as minors cannot be parties to enforceable contracts.
• Main Issue: Can a minor sue for breach of contract entered into on their behalf?
• Important Law: Minors cannot enforce contracts, and agreements with minors are void under Indian law.

8. Nash v. Inman (1908) 2 KB 1

• Key Point: Minors are liable for "necessaries," but only if the items are truly necessary.
• What Happened: A minor bought expensive clothes but already had enough. The court ruled the clothes were not "necessaries," so the minor was not liable for payment.
• Main Issue: Are minors responsible for paying for non-essential items?
• Important Law: Minors are only bound by contracts for essentials, like food, shelter, or necessary clothing, under Section 68 of the Indian Contract Act.

9. Chappel v. Cooper (1844) 153 ER 105

• Key Point: Contracts for essential services, like funerals, are enforceable even if made by minors.
• What Happened: A widow, considered a minor under the law, was held liable for her husband’s funeral expenses. The court ruled that such expenses are "necessaries."
• Main Issue: Can minors be held liable for essential services like funerals?
• Important Law: Essential goods and services fall under "necessaries," which minors must pay for, regardless of their inability to contract generally.

10. The Law Debenture Trust Corporation v. Ukraine [2017] EWHC 655

• Key Point: Contracts involving public loans can be enforced despite political disputes.
• What Happened: Ukraine borrowed money from Russia through bonds. Ukraine argued the contract was influenced by political coercion. The court ruled that the financial terms of the contract were valid and enforceable.
• Main Issue: Can political circumstances invalidate a contract between two parties?
• Important Law: Contracts made for financial obligations are generally enforceable unless proven illegal or unjust.

"When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing, something, such act or abstinence or promise is called a consideration for the promise."

Explanation

• What does this mean?
• Consideration is what you give to get something in return in a contract. It can be:
1. Something done in the past (e.g., helping someone earlier).
2. Something happening now (e.g., paying money for a product).
3. A promise to do something in the future (e.g., agreeing to provide services later).

Key Points:

1. At the promisor’s request: The action or promise must be done because the person making the promise (promisor) asked for it.
2. Provided by anyone: The consideration can come from the person receiving the promise (promisee) or even someone else.
3. Includes doing or not doing something: It could be an action (doing) or a decision not to act (abstaining).

Examples:

• Past Consideration: A finds B’s lost wallet, and B later promises to pay ₹500 to A as a reward.
• Present Consideration: A sells a book to B for ₹300. A gives the book now, and B pays the money now.
• Future Consideration: A promises to paint B’s house next week, and B promises to pay ₹5,000 after the painting is done.

1. Meaning of Unlawful Consideration

Consideration is unlawful if it:

• Is forbidden by law: Something that violates legal rules.
• Defeats the purpose of law: Goes against the spirit or intent of the law.
• Involves fraud: Includes deceit or dishonesty.
• Causes harm: Leads to injury or damage to a person or property.
• Is immoral: Violates accepted moral principles.
• Opposes public policy: Goes against societal interests or standards.

2. Effects of Unlawful Consideration

1. Void Agreement:
   • A contract with unlawful consideration is void from the beginning.
   • The court will not enforce such contracts.
   • Example: A agrees to pay B ₹10,000 to steal a car. This contract is void because the consideration (stealing) is unlawful.
2. No Legal Remedy: If one party fails to fulfill the contract, the other party cannot seek legal action to enforce it.
3. Penalties: In some cases, involvement in unlawful contracts can lead to penalties or punishments.
4. Recovery Not Allowed: Money or property exchanged under an unlawful contract cannot be recovered.

3. Examples of Unlawful Consideration

• Forbidden by Law: A promises to pay B ₹5,000 to smuggle illegal goods. This is unlawful because smuggling is forbidden by law.
• Immoral Consideration: A promises to pay B ₹20,000 to defame someone. This is immoral and void.
• Against Public Policy: A promises to pay B ₹1 lakh to stop someone from participating in a public tender. This opposes public interest and is void.

4. Section 23 of the Act

"The consideration or object of an agreement is lawful unless it is forbidden by law, is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy."

Simplified Explanation

• A contract is only valid if the purpose (object) and the exchange (consideration) are legal, moral, and beneficial to society.
• Any agreement based on unlawful consideration is void and cannot be enforced by the court.

Case 3: Venkata Chinnaya Rau v. Venkataramaya Garu (1881)

• What Happened: A woman gifted land to her daughter and instructed the daughter to pay an annuity (a fixed yearly payment) to her brother. The daughter agreed but later stopped the payments.
• Held: The court allowed the brother to enforce the agreement even though he was not a party to the contract.
• Explanation: Since the agreement was intended to benefit the brother, it was an exception to the privity rule.

Exceptions to the Doctrine

1. Trusts:
   • If a person creates a trust in favor of someone, the beneficiary can sue to enforce the trust even though they are not a party to the contract.
   • Example: A transfers property to B to hold in trust for C. Here, C can sue B to enforce the trust.
2. Family Settlement or Marriage Contracts:
   • Agreements made in the context of family settlements or marriage expenses can be enforced by third parties (family members) who were not directly part of the contract.
   • Example: In the Khwaja Mohd. Khan case, the daughter-in-law enforced a family settlement.
3. Acknowledgment of Liability:
   • When one party acknowledges their liability to a third party, the third party can enforce the contract.
   • Example: X receives money from Y to pay to Z. If X acknowledges this, Z can sue X to recover the money.
4. Assignment of Contract:
   • If a contract allows assigning its benefits to another person, the assignee can enforce the contract.
5. Contracts through Agents:
   • If a contract is entered into by an agent on behalf of a principal, the principal can enforce the contract.
6. Covenants Running with Land:
   • If a contract imposes obligations or grants benefits tied to the land, the subsequent owner of the land can enforce it.

1. Durga Prasad v. Baldeo (1881) 3 All 221

• Key Point: For an act to count as "consideration," it must be done at the promisor’s request.
• What Happened: Durga Prasad built shops based on a Collector’s order. The shopkeepers later promised him a commission but didn’t pay. The court ruled Durga Prasad couldn’t claim the money because his act of building was not done at their request.
• Main Issue: Can someone demand payment if their act wasn’t done at the promisor’s request?
• Important Law: Section 2(d) of the Indian Contract Act requires consideration to be based on the promisor's desire.

2. Errington v. Errington (1952) 1 KB 290

• Key Point: A promise becomes binding once the other party starts performing.
• What Happened: A father promised his son and daughter-in-law that the house would be theirs if they paid the mortgage installments. The father died, and his widow tried to take the house. The court ruled in favor of the son and daughter-in-law because they had started fulfilling the promise by paying the installments.
• Main Issue: Does partial performance of a promise make it enforceable?
• Important Law: Once a promise is acted upon, it cannot be revoked as long as the performance continues.

3. Venkata Chinnaya Rau v. Venkataramaya Garu (1881) 1 I.J. 137 (Mad.)

• Key Point: Consideration can move from a third party and still be valid.
• What Happened: An old lady gave her daughter land and told her to pay an annual amount to her uncle. The daughter later refused to pay, arguing that her uncle gave no consideration. The court ruled the uncle could enforce the payment since the consideration came from the mother.
• Main Issue: Can consideration come from someone other than the person benefiting from the contract?
• Important Law: Indian law allows consideration to move from a third party (Section 2(d) of the Indian Contract Act).

4. White v. Bluett (1853) 23 LJ Ex 36

• Key Point: Complaining less is not valid consideration.
• What Happened: A son promised to stop complaining about his father’s distribution of property in exchange for his father forgiving a debt. The court ruled the son’s promise was not valid consideration because he had no right to complain in the first place.
• Main Issue: Can abstaining from something you’re not entitled to do count as consideration?
• Important Law: Consideration must be real and substantial, not trivial or unsubstantial.

5. Collins v. Godfray (1831) 1 B & Ad 956

• Key Point: Doing something you are already legally bound to do is not valid consideration.
• What Happened: Collins was summoned to court as a witness. Godefroy promised to pay him for attending but later refused. The court held Collins couldn’t claim payment because he was already legally obligated to attend.
• Main Issue: Can fulfilling a legal duty count as consideration?
• Important Law: Performance of a legal obligation cannot be consideration for a contract.

8. Kedarnath Bhattacharji v. Gorie Mahomed (1886) 7 I.D. 64 Cal.

• Key Point: Promises made in response to actions benefiting the promisor can be enforceable.
• What Happened: A person promised a donation for a town hall. The authorities acted on the promise and incurred expenses. When the person refused to pay, the court held him liable as his promise influenced their actions.
• Main Issue: Is a promise enforceable when the promisee takes action based on it?
• Important Law: Section 2(d) of the Indian Contract Act recognizes promises made at the promisor’s request as valid consideration.

9. Doraiswami Iyer v. Arunachala Ayyar (1935) 43 L.W. 259 (Mad.)

• Key Point: A promise without a direct request from the promisor lacks valid consideration.
• What Happened: A person promised to donate for temple repairs but didn’t pay. Since the temple repairs weren’t done at his request, the court ruled the promise unenforceable.
• Main Issue: Can a promise be enforced without a direct request from the promisor?
• Important Law: Consideration requires a specific request or action from the promisor for it to be enforceable.

10. Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. [1915] UKHL 1

• Key Point: Only parties to a contract can enforce its terms.
• What Happened: Dunlop sold tires to a retailer with an agreement not to sell below a certain price. The retailer sold the tires to another company, which violated the price agreement. The court ruled Dunlop couldn’t sue because it wasn’t a party to the second contract.
• Main Issue: Can a person enforce a contract they aren’t a part of?
• Important Law: The doctrine of privity of contract states that only contracting parties can sue or be sued under the contract.

11. Smith & Snipes Hall Farms Ltd v. River Douglas Catchment Board (1949) 2 KB 500

• Key Point: Third parties can benefit from a contract if the intention to benefit them is clear.
• What Happened: A board agreed to maintain a riverbank. When it failed, Smith & Snipes Hall Farms suffered damages and sued. The court allowed the suit, as the contract’s purpose was to benefit landowners like them.
• Main Issue: Can third parties enforce a contract made for their benefit?
• Important Law: Contracts may allow third-party enforcement if it’s clear they were intended beneficiaries.

12. Tweedle v. Atkinson [1861] EWHC J57 (QB)

• Key Point: A third party cannot sue for a benefit under a contract they did not enter into.
• What Happened: Two fathers promised money for a marriage settlement, but one failed to pay. The son sued the father’s executor, but the court dismissed the claim because he wasn’t part of the contract.
• Main Issue: Can a third party enforce a contract made for their benefit?
• Important Law: The doctrine of privity of contract prevents third parties from suing on agreements they are not a part of.