Privity: A successive or mutual interest by two or more people in the same property that exists at the time that such property is transferred.

What creates privity?

Privity can exist long term or can be created when two parties are bonded together for one specific transaction. ... Privity can also occur when a non-contracted party has an interest in a legal action or transaction because they have developed a relationship with one of the parties who is listed in the contract.

What is the rule of privity?

Privity is a doctrine of contract law that says contracts are only binding on the parties to a contract and that no third party can enforce the contract or be sued under it.