
[Middle English privete, secrecy, privacy, from Old French, from Medieval Latin prīvitās, from Latin prīvus, single, alone.]
| Privilege, Privatization, Private Ruling | |
| Prize Broker, Pro Forma, Pro Rata |
A close, direct, or successive relationship; having a mutual interest or right.
Privity refers to a connection or bond between parties to a particular transaction. Privity of contract is the relationship that exists between two or more parties to an agreement. Privity of estate exists between a lessor and a lessee, and privity of possession is the relationship between parties in successive possession of real property.
A legal interpretation in contract law where contracts are only binding on the parties signing the contract. The idea is that, contracts are private agreements among the signatory parties which should have no bearing on others who are not involved in making the contract. While the doctrine makes sense in certain situations, over time it has proved to be problematic and numerous exceptions to the doctrine of privity are now well accepted.
Investopedia Says:
The doctrine of privity has important implications for the rights of third parties to a contract. For example, consider a life insurance contract that is made between the insurance company and the insured. The arrangement is that the insured will pay premiums, and upon their death, the insurance company will make a payment to the third-party beneficiary. Under the doctrine of privity, the beneficiary would have no right to enforce the contract, since he or she was not a party to the contract. This conclusion is clearly inequitable, therefore, third-party insurance contracts are one of the exceptions to the doctrine of privity.
Related Links:
Property transactions are complex and subject to specific state/local rules. A professional can simplify the process. Attention Home Buyers! Why You Need A Lawyer
Find out what factors to consider before hiring an attorney. How To Pick The Right Lawyer
Learn how SEC was formed, and other important events that shaped financial regulation. The SEC: A Brief History Of Regulation
Don't let company lawsuits hit you unprepared. Learn how to uncover how they might affect you. Litigation: Are Your Investments At Risk?
This type of insurance protects your assets and future wages against lawsuits. Find out if it might benefit you. It's Raining Lawsuits: Do You Need An Umbrella Policy?
Français (French)
n. - confidentialité
Deutsch (German)
n. - Rechtsbeziehung, Eingeweihtsein
Ελληνική (Greek)
n. - (απόκρυφη) γνώση
Italiano (Italian)
vincolo, conoscenza segreta
Português (Portuguese)
n. - conhecimento (m)
Русский (Russian)
участие, общность интересов
Español (Spanish)
n. - vínculo legal, relación, obligación
Svenska (Swedish)
n. - (hemlig) kännedom, vetskap, intressegemenskap (jur.)
中文(简体)(Chinese (Simplified))
私下知悉, 默契
中文(繁體)(Chinese (Traditional))
n. - 私下知悉, 默契
日本語 (Japanese)
n. - 内々に関与すること, 内々の知識, 当事者関係, 陰部
العربيه (Arabic)
(الاسم) اطلاع مشترك
עברית (Hebrew)
n. - יחסים דו-צדדיים המוכרים ע"י החוק - קשר-דם, שירות, השכרה, יחסים קרובים, הימצאות בסוד דברים, סודיות
If you are unable to view some languages clearly, click here.