Who is referred to as a "stranger to contract"?

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The term "stranger to contract" refers to a non-party who cannot sue under a contract. This concept is grounded in contract law principles, which stipulate that contracts generally only create rights and obligations between the parties who enter into them. Therefore, individuals who are not parties to the contract, regardless of their interest in the agreement, are considered "strangers" and typically do not have the legal standing to enforce the contract or claim any benefits from it.

This principle emphasizes the importance of privity of contract, a legal doctrine that means only those who are parties to a contract can enforce its terms. Thus, it is precisely this definition that makes the selected answer the most accurate description of a "stranger to contract."

Other concepts such as being a party who is legally bound or involved in negotiations do not align with the definition of a "stranger to contract," as these individuals have either obligations arising from the contract or are actively engaged in forming it. Similarly, a third party with an interest may have some stake in the contract's outcome but lacks the legal capacity to challenge or benefit from the contract unless it falls under specific exceptions, such as third-party beneficiary contracts.

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