I. Privity of Contract: The Foundation

• Contracts generally confer rights and impose duties only on the parties involved.
• Third parties typically cannot enforce contractual provisions.
• "Privity of contract" refers to this exclusive contractual relationship.

II. Exceptions to Privity: Third-Party Beneficiary Contracts

• Contracts can be designed to benefit a third party.
• Courts assess the intent of the contracting parties to determine if a third party has enforceable rights.
• Key factors:

III. Transfer of Contractual Rights and Duties

• Assignment (Transfer of Rights):
• Delegation (Transfer of Duties):
• Assignment of Contract:

IV. Novation: Complete Substitution

• Novation replaces one party entirely, transferring both rights and obligations.
• Requires agreement from all involved parties.
• Key distinctions from assignment:

V. Common Contractual Collocations:

• Confer rights: Grant legal entitlements.
• Impose duties: Assign obligations.
• Enforce contractual provisions: Ensure compliance with terms.
• Render performance: Fulfill contractual duties.
• Delegated duties: Tasks assigned to another party