Privity in United States

Practical Information

Note: Some of this information was last updated in 1982

Mutual or successive relationship to the same right of property, or the power to take advantage of and enforce a promise or warranty (in U.S. law). Identity of interest is essential. There must be a connection or bond of union between parties about some particular transaction. Thus privity of contract exists between a lessor and lessee, because the parties are mutually interested in the lease. Privity of contract also exists between a lessor and an assignee of the lease, because the assignee succeeded to the rights of the lessee. Heirs, executors, and assigns succeed to the rights and liabilities of a contract whether or not it so states. They are thus privies to the contract. Privity affects legal rights and duties and, in many cases, determines whether a party may sue or be sued. Thus a privy has the same right to relief against mistake of facts as the original party to a contract. A stranger to a contract has no right to sue for fraud, but a privy does. An injunction extends to all persons in privity with the parties enjoined. Evidence may be admissible or inadmissible because of privity. Privity may be an element in an action for negligence or in the substitution of parties in a legal action.

(Revised by Ann De Vries)

What is Privity?

For a meaning of it, read Privity in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Privity.

Meaning of Privity

In plain or simple terms, Privity means: The same right or property in common, or the same right or property one person after another.