Privity of contract

Privity of contract is a legal concept relevant to the contracts particularly the contract of sale of goods or services. Privity of contract occurs only between the parties to the contract. If a third party gets a benefit under a contract, it does not have the right to go against the parties to the contract beyond its entitlement to a benefit. An example of this occurs when the a manufacturer sells a product to a distributor and the distributor sells the product to a retailer. The retailer then sells the product to a consumer. There is no privity of contract between the manufacturer and the consumer.