Also known as:person in privity · persons in privity of contract · persons in privity of estate · privity
Written by attorneys · grounded in primary & secondary sources — see below
Parties connected through a contractual, estate, or other legal relationship that permits rights or obligations to pass between them.
Sources & Authorities
How it applies
Common Examples
6
Landlord Retains Liability After Assignment
Pierce Patterson leased commercial space to Prism Analytics under a written agreement containing a maintenance promise. Pierce later assigned the lease to Paragon Construction. When the roof failed, the landlord pursued Pierce because the assignment did not release him from the original contractual obligation.
Subsequent Buyer Sues Builder
Penelope Price purchased a newly built home from Prime Logistics. After discovering defects, she sued the original builder. The court held that lack of direct contractual connection with the builder barred her implied-warranty claim.
Select any source to read its text and confirm it supports the definition.
Cases
Restatements
Study Supplements
Parker Phillips occupied land adversely for seven years before conveying it to Pearl Porter. Pearl continued the same use for five more years. The court allowed the periods to combine because the successive occupants shared the required legal connection.
Servitude Created Without Connection
Priscilla Parks granted a right-of-way across her parcel to Pierre Poulin for access to a neighboring lot. No prior relationship existed between the parties. The servitude was nevertheless valid and bound later owners of both parcels.
Assignee Bound by Lease Covenant
Precision Tools assigned its lease containing a repair obligation to Paragon Construction. The landlord sued Paragon after repairs were neglected. Paragon became obligated because the assignment placed it in the required estate relationship with the landlord.
Manufacturer Liable Without Direct Sale
A consumer injured by a defective appliance sued the manufacturer. The product had been purchased through a retailer. The court imposed liability because the absence of a direct sales link did not shield the manufacturer from foreseeable users.
Common questions
Frequently Asked
4
Does privity of estate alone allow a landlord to enforce a lease covenant against an assignee?+
Yes. When an assignment transfers the tenant's interest, the assignee enters privity of estate with the landlord and becomes obligated to perform covenants that touch and concern the leased property.
Supporting sources
Can a subsequent home buyer enforce an implied warranty against the original builder without a direct contract?+
Courts are divided. Some require privity and deny the claim. Others extend the warranty to foreseeable subsequent purchasers even without a contractual link.
Supporting sources
When may periods of adverse use by successive occupants be combined to satisfy the prescriptive period?+
Periods may be tacked when privity exists between the successive users, allowing the later user to claim the benefit of the earlier use.
Supporting sources
Is a contractual relationship required to create a servitude that binds later owners?+
No. Modern doctrine permits creation of servitudes without any privity between the original parties.
…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,…