The doctrine of privity poses particular problems for exclusion clauses in contracts.
Exclusion or limitation clauses may exclude or limit the liability, for a specific breach or negligent act, of a contracting party to those it contracts with.
It is sometimes desirable to extend an exclusion clause to parties outside the contract. For example, a company may wish to protect contractors that it employs. On the whole, however, privity of contract acts to restrict the effect of such clauses on third parties.