Steel Mill Inc. and Transport Delivery LLC enter into a contract. UniOil Corporation will indirectly benefit from the deal. Under the principle of privity, UniOil has the right to

Question

Quizplus · Accepted Answer

The principle of privity of contract states that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it. Therefore, UniOil Corporation, being an indirect beneficiary and not a party to the contract between Steel Mill Inc. and Transport Delivery LLC, does not have the right to sue for breach or demand performance from either party.