doctrine of privity

The doctrine of privity is a legal principle stating that only the parties directly involved in a contract have the rights and obligations under that contract. This means that a third party who did not sign the agreement cannot enforce its terms or be held liable, even if they benefit from it. For example, if you hire a contractor to renovate your house, you are bound by the contract with the contractor, but a friend who benefits from your improved home cannot claim any rights or obligations under that contract.