The term “privity” refers to the relationship between two or more persons or entities who are involved in a transaction or proceeding.
Although “the term ‘privity’ itself appears to be of uncertain origin and meaning and to have been developed by the courts and applied in various contexts, one of the customary definitions is that ‘privity’ denotes mutual or successive relationship to the same thing or right of property; it implies succession.” Windham at Carmel Mountain Ranch Assn. v. Superior Court, 109 Cal.App.4th 1162, 1169-70.
Privity of Blood: Heir and his ancestor have privity of blood between them.
Privity of Contract: The parties to a contract have privity of contract between them.