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The relationship between the parties to a covenant that is based on a mutual or successive interest in the land burdened or benefited by the covenant. It also refers to the relationship between the parties to a covenant that is based on a mutual or successive interest in the land burdened or benefited by the covenant.

Real Property Privity In Covenants Exam Study Bar Exam The

Formerly a suit for breach of warranty or negligence arising from a product could only be brought by a party to the original contract or transaction and only against the party as a retailer directly dealt with.

What is horizontal privity. Horizontal privity arises when the benefits from a contract are to be given to a third party. In commercial law horizontal privity refers to the legal relationship between a party and a nonparty who is related to the party such as a buyer and a member of the buyer s family. In order to create a covenant which had the potential to run with the land the transfer between the parties had to be in the form of a conveyance in which case we say that the parties had horizontal privity.

Horizontal privity is the only one of the requirements for running covenants that can t be satisfied separately for the benefit and burden. Vertical privity involves a contract between two parties with an independent contract between one of the parties and another individual or company. Horizontal privity horizontal privity n 1.

Horizontal privity of contract becomes an issue when the benefits bestowed by a contract are given to a third party or a party that was not a part of the original contract. Vertical privity of contract involves an independent contract that develops between one signer of the original contract. Privity between the parties who agree to a covenant or equitable servitude.

The term horizontal privity refers to a relationship between the original covenantor and covenantee. Privity between transferor and transferee of property that is bound by a covenant or equitable servitude. All the other requirements for running covenants may be met for one side of the relationship but not the other.

The direct connection or relationship between parties to a contract or transaction as a purchase privity of contract see also horizontal privity sense 2 vertical privity sense 2 note.