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CMA Foundation · Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Under the Indian Contract Act, 1872, which of the following persons is regarded as a stranger to a contract between X and Y?

Z is the stranger to the contract. He is neither the promisor nor the promisee and has not contracted through an agent. X and Y are the parties, and an agent's acts for X are treated as X's own, so they are not strangers.

  1. AY, who accepted X's proposal
  2. BThe agent of X who signed the contract for X
  3. CZ, who is neither a promisor nor a promisee and gave no authority to anyone to contract for himCorrect
  4. DX, who made the proposal

Explanation

A stranger is someone who is not a party to the contract. Z is neither promisor nor promisee and has not acted through an agent. X and Y are the parties, and an agent contracting for X acts as X, so the contract binds X.

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