Privity Of Contract

A contract is a written or expressed agreement between two parties to provide a product or service. There are various types of contracts relating to business field. Three types of contracts which can seen in the mentioned case are,
I. Bi-lateral contract.
A bi-lateral contract is a reciprocal agreement between two parties where each promise to perform an act in exchange for the other parties act. Each party is an (a person who is bound to another) to its own promise and an obliges ( a person to whom another is obligated or bound) on the other parties promise. A bilateral contract specifies a duty to act in exchange for another party’s duty.

Simple definition.
A contract or agreement involving two or more parties which binds all parties to

.
III. Privity of contract
Privity of contract is the relationship between the parties to an agreement. In contracts this relationship is necessary. This contract confess right and imposes liabilities only on its contracting parties.
Example,
• in the above mentioned case ABC Ltd company enter to an agreement with insurance company.

Answer no 02
Contract is an agreement between two or more parties, it is a promise to do something in return for a vulnerable benefit. Each party to a contract acquires rights and duties relative to the rights and duties of the other parties. While all parties expect a fair benefit from the contract it does not follow that each party will benefit to an equal extent. Mainly contract consists of four main elements,
i. offer and acceptance,
An offer is defined as initial initiation of contract.
(when seller offers a price and the buyer makes an initial responds the offer is formed)
Acceptance can be defined as an conditional act, communicated by the buyer and seller.

ii. Parties
For a contract there should be minimum of two parties, However in complex business transaction this number can be vary.

iii.