- When two people know the family secret, this is an example of a shared privity.
- When two people enter into a contract together, this is an example of when they have privity of contract.
Privity is defined as a secret between two people, or a close relationship recognized by law.
- private or secret knowledge, as shared between persons
- participation in this
- Law a successive relationship to or mutual interest in the same property or rights, established by law or legalized by contract, as between a testator and legatee, lessor and lessee, etc.
Origin of privityMiddle English privete ; from Old French ; from Classical Latin privus, private
- Knowledge of something private or secret shared between individuals, especially with the implication of approval or consent.
- Law A relation of interest or identity between parties close enough to make one party subject to a suit on a claim against the other or conferred with the same rights and obligations as the other.
Origin of privityMiddle English privete, secrecy, privacy, from Old French, from Medieval Latin pr&imacron;vit&amacron;s, from Latin pr&imacron;vus, single, alone; see per1 in Indo-European roots.
From Anglo-Norman privetÃ©, privitee et al., Old French privetÃ©, from privÃ© + -tÃ©.
privity - Legal Definition
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
- The legal relationship between links in a product’s distribution chain.
- The privity between a person who signs a contract containing a restrictive clause and the person acquiring the property that is so restricted.