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privity definition - legal

n

A legally recognized relationship of interest of two parties, be it in a transaction, a piece of property, or a proceeding.
horizontal privity
. The legal relationship between two parties in a distribution chain who are on equal level, as between two consumers.  See also vertical privity. 
privity of contract
The relationship between the two parties to a contract that confers a right to take action on the contract; largely abrogated by enactment of warranty laws, permitting suits by users of products despite lack of privity with manufacturers.
privity of estate
A joint or successive relationship to a property involving transfer of possession by contract, judgment, or descent, as between landlord and tenant, or life tenant and remainderman.
vertical privity
  1. The legal relationship between links in a productÂ’s distribution chain.
  2. The privity between a person who signs a contract containing a restrictive clause and the person acquiring the property that is so restricted.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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