Third-Party Beneficiary
/ˈθɜrdˌpɑrti ˌbɛnəˈfɪʃɛri/
Definitions
- (n.) A person who, though not a party to a contract, is recognized by the contract as entitled to enforce its terms or receive benefits.
The third-party beneficiary sued to enforce the contract provisions made for their benefit.
Forms
- third-party beneficiaries
Related terms
See also
Commentary
The distinction between intended and incidental third-party beneficiaries is crucial; only intended beneficiaries have enforceable rights under the contract.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.