Privity Law & Legal Definition


Privity means a connection or mutual interest between parties. It is often used in the law of contracts, which requires that there be "privity" if one party to a contract can enforce the contract by a lawsuit against the other party. Privity may also refer to a successive or mutual relationship to some real property. Thus, a tenant of a buyer of real property cannot sue the former owner (seller) of the property for failure to make repairs guaranteed by the land sales contract between seller and buyer since the tenant was not "in privity" with the seller.

For example, a subcontractor may lack privity to bring an action against the entity who has contracted with the prime contractor.