- 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 prīvitās, from Latin prīvus, 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.