Question:
Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : The doctrine of privity mandates that only a party to a contract can claim upon it.
Facts : P started the business of manufacturing table lamps which he sold to a distributor (“Q”) who in turn sold the lamps to a store owner (“R”) in the city. P entered into an agreement with Q which mandated that Q can only sell the lamps to store owners at a minimum retail price of ₹50, failing which Q would have to pay P ₹5 for each lamp sold below ₹50. Q entered into an identical contract with R, mandating that R can only sell the lamps to customers for ₹50, failing which R would have to pay Q ₹5 for each lamp sold below ₹50. R sold a lamp to a customer for ₹40 and P seeks to claim against R.
Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : The doctrine of privity mandates that only a party to a contract can claim upon it.
Facts : P started the business of manufacturing table lamps which he sold to a distributor (“Q”) who in turn sold the lamps to a store owner (“R”) in the city. P entered into an agreement with Q which mandated that Q can only sell the lamps to store owners at a minimum retail price of ₹50, failing which Q would have to pay P ₹5 for each lamp sold below ₹50. Q entered into an identical contract with R, mandating that R can only sell the lamps to customers for ₹50, failing which R would have to pay Q ₹5 for each lamp sold below ₹50. R sold a lamp to a customer for ₹40 and P seeks to claim against R.
Principle : The doctrine of privity mandates that only a party to a contract can claim upon it.
Facts : P started the business of manufacturing table lamps which he sold to a distributor (“Q”) who in turn sold the lamps to a store owner (“R”) in the city. P entered into an agreement with Q which mandated that Q can only sell the lamps to store owners at a minimum retail price of ₹50, failing which Q would have to pay P ₹5 for each lamp sold below ₹50. Q entered into an identical contract with R, mandating that R can only sell the lamps to customers for ₹50, failing which R would have to pay Q ₹5 for each lamp sold below ₹50. R sold a lamp to a customer for ₹40 and P seeks to claim against R.
Updated On: Aug 4, 2024
- P will not be successful since there is no privity of contract between P and R
- P will not be successful since R is free to sell the product at the price of their choosing
- P will not be successful since Q has not been made a party to the proceedings
- P will not be successful since there is no privity of contract between P and Q
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The Correct Option is A
Solution and Explanation
The correct option is (A) : P will not be successful since there is no privity of contract between P and R.
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