privity Hear it!

privity Definition

priv·ity (priv′i tē)

noun pl. -·ties

    1. private or secret knowledge, as shared between persons
    2. participation in this
  2. 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.

Etymology: ME privete < OFr < L privus, private

privity Law Definition

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 product’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.

privity Usage Examples

Preposition: of

  • contract: Privity of contract was abolished for new leases coming into force from 1 January 1996.
  • estate: Prior to the assignment, the assignee has neither privity of estate nor privity of contract with the Landlord.