Final answer:
The concept that only the parties to a contract have enforceable rights and duties is 'privity of contract.' It is key in contract law, closely related to property rights, and crucial for economic transactions in a society.
Step-by-step explanation:
The principle that one who is not a direct party to a particular contract normally does not have rights under that contract is known as privity of contract. This legal doctrine signifies that only the parties within the contractual agreement have the rights and obligations to enforce the contract and are subject to its terms. Contractual rights are intrinsically linked to property rights, wherein individuals or entities that own property have the liberty to engage in contracts with others concerning the use of their property. These contracts offer legal recourse in instances of breach or noncompliance. For example, in an employment contract, failure to provide payment for services rendered is considered property theft, as service constitutes transferred property through the labor provided. Robust property rights and enforcement of contractual rights are essential for a society's economic growth, as they instill confidence in individuals and businesses to engage in various transactions without fearing nonpayment.