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Jus quaesitum tertio

Term
Contract
Literal meaningA right acquired by a third party
Pronunciationyoos kwy-SEE-tum TER-shee-oh

A right that a contract gives to a person who is not a party to it.

Example

A promises B to pay Rs 5,000 to C. C is not a party. Whether C can enforce the promise depends on the privity rule.

Case laws
  • Dunlop Pneumatic Tyre Co. v. Selfridge & Co. (1915), House of Lords: only a party to a contract can sue on it. English law knows nothing of a right given to a third party by contract.
  • M.C. Chacko v. State Bank of Travancore (1969), Supreme Court: a person who is not a party to a contract may sue on it if it was made for his benefit.
Exam tip

Asked with privity of contract and its exceptions.

Memory trick

A stranger's right.

Key takeaway

A stranger to a contract generally cannot enforce it, with exceptions.

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