third party beneficiary contract

third party beneficiary contract

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. Established in US law, English law has recently adopted a similar position by statute. See JUS QUAESITUM TERTIO, PRIVITY OF CONTRACT.
References in periodicals archive ?
1996) ("[T]o create a third party beneficiary contract, the parties must intend that the promisor assume a direct obligation to the intended beneficiary at the time they enter into the contract.