Also known as: privity · privy · privity of contract
Written by attorneys · grounded in primary & secondary sources — see below
A legal relationship between parties arising from a contract, an estate in land, or a voluntary transfer that permits covenants to run with the land, allows successive periods of adverse use to be tacked for prescription, or binds nonparties to judgments.
Isaac Irving leased a warehouse to Ingrid Innes under a written lease requiring him to maintain structural supports. Irving later sold the building to Innovate Pharmaceuticals. Ingrid continued paying rent to the new owner but the supports deteriorated. Because the original lease created privity of contract between Isaac and Ingrid, Isaac remains liable for the repairs even after the sale.
Ismael Ibrahim purchased a newly built home from its first owner. After discovering construction defects, Ismael sued the original builder-vendor directly. The builder had no contractual relationship with Ismael. Because Ismael lacked privity with the builder, the court dismissed the implied-warranty claim.
Select any source to read its text and confirm it supports the definition.
Igor Ito used a strip of neighboring land for loading trucks for ten years. He then sold his factory to Iris Energy under a deed that expressly conveyed the existing loading area. Iris continued the identical use for another six years. The voluntary transfer created privity between Igor and Iris, allowing Iris to tack the prior period and establish a prescriptive easement.
Isla Ireland recorded an agreement granting an online retailer permanent space on her mall wall for parcel lockers even though the retailer owned no interest in any parcel. Because no privity relationship is required to create a servitude, the recorded grant established an enforceable servitude rather than a mere revocable license.
Isabelle Inman assigned her lease to Icarus Aviation. The lease required resurfacing a shared access road that touched and concerned the premises. The assignment brought Icarus into privity of estate with the landlord. Icarus therefore became obligated to perform the resurfacing covenant.
Indigo Textiles purchased a machine from a distributor. An employee of Indigo was injured when the machine malfunctioned. Indigo sued the manufacturer for negligence. Because the manufacturer owes a duty of due care to any foreseeable user regardless of contractual privity, the absence of a direct contract did not bar the claim.
Privity exists when a voluntary transfer such as a deed or purchase agreement conveys the dominant parcel and expressly or impliedly passes along the ongoing adverse use. The transfer connects the prior user’s claim to the successor’s continued use so the periods may be added together.
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No. When the original lease creates privity of contract, the transferor remains liable after assignment unless the landlord expressly releases the obligation. Privity of estate ends with the transfer, but contractual privity continues.
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Courts are split. Some jurisdictions require privity and therefore deny the claim. Others extend the warranty to subsequent buyers. The outcome depends on whether the jurisdiction treats the warranty as running with the property or as strictly contractual.
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No. Modern authority permits creation of a servitude without any privity relationship between the parties. A recorded grant manifesting intent to create a permanent burden is sufficient.
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A nonparty is bound only if it was in privity with a party or exercised control over the prior litigation. Mere identity of legal theory or interest is insufficient without that relationship.
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…315 U. S. 343; Baker v. Baker, Eccles & Co., 242 U. S. 394. But we have no such situation here. The trustee of the trust was in privity with the deceased. She was the settlor; and under the trust, the trustee was to do her bidding. That is to say, the trustee, though managing the res during the life of the settlor, was on…