Under the Doctrine of Privity, who can sue or be sued on a contract?

• A. Only the party to the contract can sue or be sued
• B. Any person with an interest in land can sue
• C. The agent may sue, even if not a party
• D. Third parties always have rights under the contract

Answer: (A)

Privity of contract means that enforceable rights and obligations under a contract exist only between the people who actually signed it. Because of that, only the contracting parties can sue on the contract or be sued under it. This is why the statement that describes “the party to the contract” as the one who can sue or be sued is the correct understanding of the doctrine.

Why the other ideas don’t fit: simply having an interest in land doesn’t grant a contract-based right to sue unless the contract expressly creates such a right or a specific statute applies; an agent isn’t automatically a party to the contract and can’t sue on it just for acting in that role; and third parties do not automatically have rights under a contract unless a clear exception applies.