A relationship of direct involvement between parties to a contract is known as privity.

Question

Quizplus · Accepted Answer

This statement is true. Privity refers to the legal relationship that exists between parties who are directly involved in a contract. This means that they have a direct involvement in the agreement and are therefore bound by its terms and conditions. Parties who are not in privity with the contract cannot be held liable for its breach.

A Relationship of Direct Involvement Between Parties to a Contract