Contract Glossary
Privity
Definition
The legal relationship between parties to a contract. Only parties with privity, those who signed the contract, can enforce it or be bound by it. Third parties generally can't sue or be sued under a contract they weren't part of.
In Practice
If you hire a general contractor who subcontracts the plumbing, and the plumber does terrible work, you can't sue the plumber directly, you don't have privity with them. Your contract is with the general contractor. There are exceptions (third-party beneficiary clauses, warranties), but the default rule keeps outsiders out of the contract.
Common in these contract types
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