What term describes the principle that a contract cannot confer rights or impose obligations on third parties without their consent?

The principle that describes the concept where a contract cannot confer rights or impose obligations on third parties without their consent is known as privity of contract. This legal doctrine establishes that only the parties involved in a contract have the rights and responsibilities that arise from that agreement.

Privity of contract ensures that third parties—those who are not part of the agreement—do not have the ability to sue for breach of contract or claim any benefits from it unless they are explicitly included or consent to the terms. This principle is vital in contractual relationships, as it protects the integrity of contracts by allowing only the parties involved to dictate their terms and obligations.

The other options do not encapsulate this concept accurately. Agency involves the relationship where one party has the authority to act on behalf of another, but it doesn't relate specifically to third parties and their rights in the context of contracts. Independence of contracts refers to the idea that contracts do not necessarily affect one another unless explicitly stated. Liability of third parties can imply various legal responsibilities separate from the contract itself but does not address the core principle of consent in relation to rights and obligations. Thus, privity of contract is the correct term to describe the limitation regarding third-party involvement in contractual agreements.