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What is PRIVITY? The term âprivityâ means mutual or successive relationship to the same rights of property. The executor is in privity with the testator, the heir with the ancestor, the assignee with the assignor, the donee with the donor, and the lessee with the lessor. Union Nat. Bank v. International Bank, 123 111.
Privity is a doctrine in English contract law that covers the relationship between parties to a contract and other parties or agents. At its most basic level, the rule is that a contract can neither give rights to, nor impose obligations on, anyone who is not a party to the original agreement, i.e. a third party.ritics also argued that with the large number of inconsistencies and exceptions with the doctrine of privity, it was bad law, as it provided no reliable rule; the way that the law works in theory is hugely different from the way it was enforced by the courts.