Also known as: requirements of privity · privity requirement · privity requirements · privity of contract
Written by attorneys · grounded in primary & secondary sources — see below
A prerequisite for the enforcement of covenants and lease obligations against successors in interest. It consists of a direct legal relationship between the original parties that allows burdens or benefits to run with the land or leasehold. The requirement distinguishes between privity of contract, which survives transfers, and privity of estate, which terminates upon conveyance of the interest.
Ivan leased a loft to Brook Cyber under a lease containing an express promise to provide tech support. Brook Cyber assigned the lease to South Dev without any release from Ivan. Ivan continued to accept rent from South Dev but sued Brook Cyber when support stopped. The court held Brook Cyber liable because its obligation rested on privity of contract that survived the assignment.
Roland Rhodes leased property to Radiance Media under a lease with an express maintenance covenant. Radiance Media assigned to Raven Logistics and obtained a promise from Raven to perform the covenant. Raven later assigned to Rising Sun Electronics. Roland sued Raven after a breach. The court imposed liability on Raven because its assumption created privity of contract that survived the second transfer.
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Roger Ramirez leased land to Roland Rhodes under a covenant to maintain fencing. Roland assigned the leasehold to a buyer who later conveyed to a subsequent tenant. When fencing fell into disrepair the landlord sued the original lessee. The court enforced the covenant because privity of contract survived the successive transfers.
Roberto Reyes leased commercial space containing a repair covenant. He assigned to a corporation that later assigned again without release. After breach the landlord sued the first assignee. The court imposed liability because the original contractual privity continued despite the second transfer.
Raphael Rivera leased property with an express use restriction. He assigned the leasehold and the assignee promised performance. After further transfer the landlord sued the first assignee for violation. The court held the assignee liable on surviving privity of contract created by the assumption.
Ronald Reed purchased land subject to a recorded maintenance covenant benefiting neighboring parcels. He conveyed to a buyer who ignored the covenant. The original promisee sued the subsequent owner. The court enforced the burden because vertical privity connected the successor to the original covenantor.
Yes. An original tenant's express promise in a lease creates a contractual obligation that remains enforceable by the landlord after assignment unless the landlord grants an express release. The assignment terminates privity of estate but leaves the contractual privity intact.
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Horizontal privity requires a special relationship between the original covenanting parties at the time the covenant is created. Vertical privity requires a chain of title connecting a successor to the original party whose estate is burdened or benefited. Modern law has largely abandoned the horizontal privity requirement.
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No. Strict products liability permits recovery by the ultimate consumer without any direct contractual relationship to the manufacturer or other sellers in the distribution chain. The historical privity requirement has been eliminated to protect consumers from defective products.
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Yes. The benefit of a promise respecting land use runs to the promisee's successors without any privity between the promisor and promisee beyond the promise itself. A successor to the promisee may enforce the restriction against a successor to the promisor.
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…manufactured they will be dangerous to life or limb, then society’s interests can only be protected by eliminating the requirement of privity between the maker and his dealers and the reasonably expected ultimate consumer. In that way the burden of losses consequent upon use of defective articles is borne by those who are in a…