Vertical Privity
Definition
Privity, i.e., a relationship between parties that share a legal interest in or right to some property or matter, that occurs between an original party and a successor, such as a manufacturer and buyer in a distribution chain, or parties to a real estate transaction in which one conveys property to the other. Vertical privity can make parties in a distribution chain jointly liable for defects, or can bind a purchaser of property to existing covenants on that property.