Privity of Contract in Nigerian Law: Meaning, Exceptions, and Examples

What is Privity of Contract? Privity of contract is a fundamental common law principle establishing that only parties directly involved in a contract possess rights and obligations under that agreement. The doctrine ensures contractual relationships remain exclusive to signatories, preventing third parties from enforcing or being bound by contractual terms. The Nigerian Supreme Court affirmed this principle in Chuba Ikpeazu v. African Continental Bank (1965) NMLR 374, stating that generally, a contract cannot be enforced by a person who is not party to it, even if made for their benefit. Core Principles of Privity The doctrine operates on three essential foundations: 1. Binding Obligations: Only...

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