Legal Definitions - horizontal privity

Definition: Horizontal privity is the legal relationship between two parties who have a mutual interest in the same subject matter, such as a transaction or piece of property. It refers to the connection or relationship between two parties, each having a legally recognized interest in the same subject matter.

Examples: An example of horizontal privity is the legal relationship between a buyer and a member of the buyer's family. Another example is the relationship between two parties to a contract, allowing them to sue each other but preventing a third party from doing so.

Explanation: Horizontal privity is important in commercial law and contract law. It allows parties to have a legally recognized interest in the same subject matter, which can help protect their rights and interests. For example, in a contract, horizontal privity allows the parties to sue each other if one of them breaches the contract. However, it prevents a third party from suing the parties because they do not have a legally recognized interest in the contract.