Also known as: privity relationships · privity · privity of contract
Written by attorneys · grounded in primary & secondary sources — see below
A mutual or successive relationship between parties concerning the same rights or property interests. The relationship permits obligations or benefits to bind successors, run with land, or allow tacking of periods in prescription.
Preston Pratt leased property to Paula Pierce under a written lease requiring Pratt to maintain structural supports. Pratt later sold the reversion to Phoenix Technologies. Because the maintenance obligation rested on privity of contract and Pierce never released Pratt, Pratt remains liable to Pierce for any later breach even after the transfer.
Patrick Phan bought a newly built home from Premier Manufacturing. After discovering defects, Phan sold the home to Priya Prasad. Because Prasad lacked any direct contractual relationship with Premier, courts following the restrictive view deny her an implied-warranty claim against the original builder.
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Phuong Pham used a gravel path across Pilar Pena's land for ten years. Pham then sold her parcel to Pacific Bank, which continued the identical use for another eight years. Because the deed transferred all interests in the path, the two periods may be added together to satisfy the prescriptive period.
Precision Tools recorded an agreement granting an online retailer permanent space on the exterior wall of its building for parcel lockers. Although the retailer held no ownership or lease interest in any parcel, the recorded permanent grant created an enforceable servitude.
Premier Manufacturing assigned its leasehold to Phoenix Technologies. The original lease required resurfacing a shared access road that touched and concerned the premises. Because the transfer placed Phoenix in privity of estate with the landlord and the parties intended the burden to run, Phoenix must perform the resurfacing.
Paula Pierce bought a space heater from a retailer. The heater tipped over, failed to shut off, and caused burns. Because the manufacturer owed a duty of due care to any foreseeable user regardless of contractual privity, Pierce may recover in negligence even though she never dealt directly with the manufacturer.
Privity of estate ends when the landlord transfers the entire reversionary interest. Contractual privity survives unless the tenant expressly releases the original landlord from the lease obligations.
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No privity relationship between the parties is necessary to create a servitude. A recorded permanent grant can create an enforceable servitude even when the beneficiary holds no ownership or lease interest in the burdened land.
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Periods of use by successive adverse users may be added together if privity exists between them. A deed that assigns all interests in the disputed route satisfies the privity requirement and permits tacking.
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Courts are split. Some jurisdictions require privity and deny the claim. Others permit enforcement by subsequent purchasers even without direct contractual privity with the builder-vendor.
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No. A manufacturer owes a duty of due care to any foreseeable plaintiff, including users and bystanders, regardless of whether the injured party purchased the product directly from the manufacturer.
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…In most areas product liability law has moved far beyond “mere” implied warranties running between two parties in privity with each other.[^maj-19] The rigid doctrines of real property law have tended to inhibit the application of implied warranties to transactions involving real estate.[^maj-20] Now,…