What does Privity of Contract mean? Read on to discover the definition & meaning of the term Privity of Contract - to help you better understand the language used in insurance policies.
Privity of Contract
The relationship that exists between two parties by virtue of their having entered into a contract. This concept incorporates the legal principle that a contract may not impose duties on a noncontracting party, nor may a noncontracting party claim any right or benefit as being guaranteed by the contract.
We hope the you have a better understanding of the meaning of Privity of Contract.