Which term describes the legal concept that the enforcement rights under a contract are limited to the parties involved?

• A. Exhaustion of administrative remedies
• B. Contract
• C. Promisee
• D. Privity of contract

Answer: (D)

Privity of contract holds that enforcement rights under a contract are limited to the parties who signed it. Only those who are party to the contract can sue to enforce its terms or be sued for breach, so a nonparty generally lacks the standing to enforce promises. Exceptions exist when the contract explicitly benefits a third party or when statutes create rights for nonparties, but the default rule centers on who actually signed the agreement. The other ideas described by the other terms relate to different concepts—one is about procedural steps to pursue remedies, another is about the contract document itself, and another refers to the recipient of a promise—not about who has enforceable rights under the contract.