1. Traditionally, only parties to a contract had rights and liabilities under the contract. This was known as the principle of ___.

2. Match the term with the correct definition.

Assignment Transferring

all of the duties arising under a contract to another person

Delegation Transferring all the rights arising under a contract to another person

Privity of contract, Assignment

Explanation:

Privity of contract is the relationship that exist between the parties to a contract which allows them to sue each other meanwhile it prevents a third party from doing so. It is a common law principle which provides that a contract cannot confer rights or impose obligations upon any person who is not a part to the contract.

Assignment: This is the act of transferring all or part of one's rights arising under a contract to another another person.