ABSTRACT
The doctrine of privity of contract establishes that only parties to a contract can enforce its terms, ensuring contractual obligations remain exclusive. However, this strict principle often clashes with voluntary promises which are particularly those recognized under Section 25 of the Indian Contract Act, 1872, which allows for the enforcement of certain promises even without consideration. This paper will explore the apparent contradiction between these two legal principles, analyzing how voluntary promises, especially those based on natural love and affection or past consideration, challenge the rigidity of privity. Through an examination of Indian judicial precedents and a comparative analysis with legal systems in the UK and the US, this research will evaluate whether Section 25 serves as a genuine exception to the privity doctrine or remains limited in its application. Furthermore, the paper will assess how Indian courts have attempted to balance the strictness of privity with equitable considerations, ensuring that certain promises are upheld when fairness demands it. Judicial and legislative trends indicate a gradual shift towards recognizing the enforceability of voluntary promises, even in the absence of direct contractual privity. The research will propose potential reconciliatory approaches, either through broader judicial interpretations or legislative amendments, to harmonize the strict doctrine with evolving contractual principles. Ultimately, this study aims to highlight the practical implications of this reconciliation, ensuring that contract law remains both predictable and just in contemporary commercial and personal agreements.
Kulshrestha, Saina, Privity of Contract and Voluntary Promises: A Path Towards Legal Reform in Indian Contract Law (May 11, 2025).
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