Privity of Contract Law & Legal Definition


Privity of Contract refers to relationship between the parties to a contract which allows them to sue each other but prevents a third party from doing so. It is a doctrine of contract law that prevents any person from seeking the enforcement of a contract, or suing on its terms, unless they are a party to that contract. As a general rule, a contract cannot confer rights or impose obligations arising under it on any person except the parties to it. However, the requirement of privity has been relaxed under modern laws. Doctrines of implied warranty and strict liability allow a third-party beneficiary or other foreseeable user to sue the seller of a defective product.