- Privity is defined as a secret between two people, or a close relationship recognized by law.
- 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 definition by Webster's New World
- 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: Middle English privete ; from Old French ; from Classical Latin privus, private
privity definition by American Heritage Dictionary
noun pl. priv·i·ties
- Knowledge of something private or secret shared between individuals, especially with the implication of approval or consent.
- Law a. A relation between parties that is held to be sufficiently close and direct to support a legal claim on behalf of or against another person with whom this relation exists.b. A successive or mutual interest in or relationship to the same property.
Origin: Middle English privete, secrecy, privacy, from Old French, from Medieval Latin prīvitās, from Latin prīvus, single, alone; see per1 in Indo-European roots.
privity - Business Definition
- The contractual relationship or mutual interest between two parties, such as a landlord and tenant.
- Private knowledge held jointly with another party. See also vertical privity 2.
privity - Legal Definition
- 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.