Privity

When we say two parties have “privity,” it means they have some sort of bond that is recognized by law. Though privity can refer to a blood bond—Venus and Serena Williams have privity ‘cause they’re sisters—when it’s used in day-to-day conversation, it usually means there’s some kind of contractual bond at work. Spouses have privity, as do business partners, landlords, and tenants, and pretty much any two entities that have a formal, legally recognized relationship.

Let’s take this one step further and delve into the fascinating world of contract law. When two parties have privity of contract, it means one can sue the other if said contract is breached. It also means that only the people with privity of contract can sue for breach of contract. In other words, if Jack and Diane have a contract with each other and Jack breaches it, Diane’s bestie Charlotte can’t run in and sue him. The suing has to be done by Diane.