Exceptions to the Statement 'Stranger to Contract cannot sue upon the Contract'. Trust deeds: In case of trust arrangements, the beneficiary, though he is a stranger to the contract, can file suit in case where trustee comes across breach of trust. When charge on property is made: In case where charge is created on property, stranger can file a suit. Agency Contract: In case of agency contract, the principle, though he is a stranger can file a suit.
Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Skip to content Business Law 0. Where the promisor, by his conduct, acknowledges or otherwise constitutes himself as an agent of the third party, a binding obligation is thereby incurred towards him, 4 Assignment jof a contract.
Eventually, the family went through a partition and Radhika filed a suit to claim her marriage expenses. The Court held the case because Radhika was the beneficiary of the provision despite being a stranger to the contract. Assignment of a contract. The assignee of a debt or an actionable claim may sue the original debtor if the assignment is a legal one.
If the benefits under the contract are assigned to the third party, the assignee can sue. Example : Krishnan Lal Sahu Vs. Promila Bala, A. R cal. In this case, Court held that "the assignee of rights and benefits under a contract not involving personal skill can enforce the contract subject to the equities between the original parties. Sometimes, one of the parties to a contract acknowledges the payment to a third party or otherwise constitutes himself as an agent of the third party.
In such cases, the party incurs a binding obligation towards the third party who can enforce it. And if that party acknowledges the payment to the third person or constitutes himself as an agent of that third person, then the third person can recover the amount from such a party. Example: Aby gives Rs 1, to Jose to pay Anu. Jose acknowledges the receipt of funds to be paid to Anu. However, he fails to pay him. Anu can sue Jose for recovery of the amount. If a certain land is purchased by somebody with the notice of rights and obligations of the owner towards that property, then those rights and obligations shall bind the purchaser although he was not a party to the agreement.
This exception was created in the case of Tulk vs. Moxhay, In this case, court held that, DB although no party to the arrangement, was clearly entitled to recover the arrears of the allowance. VS Husaini Begum ] 2 Marriage settlement, P artition or other family arrangements : Where an agreement is made in connection with marriage, partition or other family arrangements and a provision is made for the benefit of a person, he may sue although he is not a party to the arrangement Examples: a Two brothers on a partition of joint properties agreed to invest in equal share a certain sum of money for the maintenance of their mother.
In this case, she Mother was entitled to require her sons to make the investment. J entered into an agreement with his father in law to treat her property or else pay her monthly maintenance, subsequently, she was again ill treated and also driven out, here she was entitled to enforce the promise made by J to her Father. Share to Twitter Share to Facebook. Labels: Law of Contracts. Unknown 28 November at Unknown 10 April at
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