third-party beneficiary

third-party beneficiary
A person who is not a party to a contract, but has legal rights to enforce the contract or share in proceeds because the contract was specifically intended for that person's benefit. For example, a grandparent contracts to buy a car for a grandchild. If the seller refuses to go through with the deal after receiving payment, the grandchild may sue, even though not a party to the contract. Compare: incidental beneficiary.
Category: Business, LLCs & Corporations → Self-Employed Consultants & Contractors
Category: Representing Yourself in Court
Category: Small Claims Court & Lawsuits
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Nolo’s Plain-English Law Dictionary. . 2009.

third-party beneficiary
n.
   a person who is not a party to a contract but has legal rights to enforce the contract or share in proceeds because the contract was made for the third party's benefit. Example: Grandma enters into a contract with Oldfield to purchase a Jaguar automobile to be given to grandchild as a graduation present. If Oldfield takes a down payment and then refuses to go through with the sale, grandchild may sue Oldfield for specific performance of the contract as a third-party beneficiary.

Law dictionary. . 2013.

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Look at other dictionaries:

  • third–party beneficiary — see beneficiary d Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • third party beneficiary — n. A person who is not a party to a contract but who will benefit from it and has rights under it. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • Third party beneficiary — A third party beneficiary, in the law of contracts, is a person who may have the right to sue on a contract, despite not having originally been a party to the contract. This right arises where the third party is the intended beneficiary of the… …   Wikipedia

  • Third Party Beneficiary — A person who will benefit from a contract made between two other parties. This third party beneficiary was not a party to the contract itself, but if the contract is fulfilled, the third party stands to realize a benefit. Under certain… …   Investment dictionary

  • third party beneficiary contract — in US law a contract that allows a party to whom the parties in a main contract intend to receive a benefit to enforce a duty created by the main contract, irrespective of an issue of consideration: Lawrence v . Fox 20 NY 268 (1859). English law… …   Law dictionary

  • Third-Party Beneficiary — An individual who can sue parties in a contract despite not being a party listed in the original contract document. The third party beneficiaries right to sue, called ius quaesitum tertio, comes from a party in the contract intending to involve… …   Investment dictionary

  • third-party beneficiary — The beneficiary of a contract made between two other persons. 17 Am J2d Contr § 302 …   Ballentine's law dictionary

  • third-party beneficiary contract — A contract for the benefit of a third person. 17 Am J2d Contr § 302 …   Ballentine's law dictionary

  • third party — see party 1a, b Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. third party n. A p …   Law dictionary

  • Third party — is often used in the English language in connection with any relationship between two parties or entities to refer to some other person or entity with some involvement, and may refer to:* Third party (politics), in any two party system of… …   Wikipedia

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