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Only the parties who signed the original contract can have rights with respect to that contract?

1) True
2) False

User Btype
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1 Answer

7 votes

Final answer:

The assertion that only the original parties to a contract can have related rights is false due to exceptions like third party beneficiary rights and the ability to assign or delegate contractual rights and obligations, enabling enforceable agreements and economic growth.

Step-by-step explanation:

The statement that 'Only the parties who signed the original contract can have rights with respect to that contract' is generally false. While it's true that contractual rights are primarily between the parties who enter into a contract, there are exceptions to this rule. One such exception is the doctrine of third party beneficiary rights, where a third party may have rights under a contract if it can be shown that the contract was intended to benefit that third party. Moreover, contractual rights and obligations can also be transferred to others through an assignment or delegation, unless specifically prohibited by the contract terms or by law.

Thus, the legal system provides mechanisms for non-parties to a contract to have rights or obligations with respect to that contract. This ensures the possibility of enforceable agreements between parties regarding the use of property, which is essential for sustaining economic growth and the successful conduct of business.