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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.
The common law doctrine of privity of contract means that a contract cannot (as a general rule), confer rights or impose obligations arising under it on any person except the parties to it..... no stranger to the consideration can take advantage of a contract, although made for his benefit.... the doctrine of privity of contract provides that only a party to a contract has standing to sue to enforce it, even if the contract confers benefits on others in some fashion..