third-party beneficiary


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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.

References in periodicals archive ?
There, in common with most jurisdictions, "[t]he burden is on the person claiming to be a third-party beneficiary to show that the parties to the contract intended to benefit him.
These circumstances include incorporation by reference, alter ego, equitable estoppel, third-party beneficiary, and agency.
Namely, the Court ruled that: 1) the City was not a third-party beneficiary, 2) there were no grounds for "direct-benefits" estoppel, and 3) CIGNA was not the City's authorized agent for purposes of agreeing to arbitration.
District Court for the Western District of Washington at Seattle had earlier ruled that as a third-party beneficiary of Motorola's commitments to the ITU and the IEEE, Microsoft is entitled to a RAND (reasonable and non-discriminatory) license agreement for Motorola's H.
He was a third-party beneficiary of the SLI policy purchased by Thompson
Because Ohio law, unlike Missouri law, allows consideration of evidence beyond the contract terms to determine third-party beneficiary status, it was appropriate to grant the issuer banks leave to amend.
On August 10, 2010, the Appellate Court of Illinois, Fourth District, determined that a third-party beneficiary is entitled to enforce a contract embedded in a mutual will before the death of the surviving spouse.
The court observed that while finding the element of duty in a medical malpractice action requires a physician-patient relationship, it was not disallowing a cause of action for medical malpractice by a third-party beneficiary, such as a child, based on negligent: prenatal care or a negligent delivery.
F might require that each signatory designate every other signatory as a third-party beneficiary of any promises made to F.
Trimble Navigation Limited (1) (Trimble II), the Fourth Circuit Court of Appeals held that the United Kingdom Ministry of Defence (UK MOD) was not a third-party beneficiary of Trimble Navigation Limited (Trimble), a U.
Consequently, the plaintiff can argue that he or she was an intended third-party beneficiary of the contract between the premises owner and the defendant, and privity of contract exists.

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