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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.

Related Rules


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Reed v. City of Chicago