The principle of privity of contract will, inevitably cause the parochialism of contract law.

The thesis lists out the origin and historical development of the doctrine of privity of contract and investigates its role and status on the modern contract law.

As a foundation of the contract institution, in China, relativity of contract is animportant principle of legislation and justice as well.

It is the breakthrough of the relativity of contract.

The relativity of contract is an important doctrine in classic contract law, however with the gradual complexity of economic relationship and socialization of contract, to firmly observe doctrine of relativity of contract cannot adapt to the multi requirements of complicated social economic life.

The article studied the relativity of the contract and the dilation of the contract s effectiveness connecting with the legislation of the contract.

The system on third party beneficiary contracts is a necessary breakthrough for "doctrine of the privity of contracts", but it hasn t been established in China.

The privity of contract is the common base of contract law in the continent law system and the American law system.

With development of economy and prosperity of trade,the relativity of contract has expanded in modern times.

"Doctrine of privity of contract" has been the unshakable credendum of the classical contract law and has been treated as the corner stone of contract rule and system.