What is one of the exceptions to the principle of privity of contract?

The principle of privity of contract states that a contract cannot confer rights or impose obligations upon any person who is not a party to the contract. However, one significant exception to this principle is found in agency law. In agency relationships, an agent acts on behalf of a principal, which allows third parties to enforce the contract against the principal even though they are not a direct party to it. This means that while the third party is not in the contract themselves, they can still seek remedies based on the actions of the agent, who is acting within the scope of their authority.

Agency law establishes how individuals or entities can appoint others to enter into agreements on their behalf, effectively allowing those third parties to have enforceable rights under the contract. This exception acknowledges the practical realities of business and personal relationships where intermediaries play a critical role in transactions.

Other options, such as mutual consent, consideration, or written documentation, relate to contract formation or validity but do not establish exceptions to the privity principle in the same way that agency law does.