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 ?
An employment agreement that the plaintiff was required to sign as a condition of Johnsons investment designated Johnson as a third-party beneficiary authorized to enforce the companys rights under the agreement.
Legal dictionaries define a third-party beneficiary (TPB) as a person or entity who, though not a party to the contract, stands to benefit from the contracts performance.
Sunrise Fresh Produce an attempt was made by a person claiming to be a third-party beneficiary to collect more than the existing policy limit because of its claimed negligence of the insurance agent.
Forms are adopted to address a multitude of situations including the need for third-party beneficiary rights; the retention of rights to make passive recreational uses or riparian uses; and a specific form for local governments and the Army Corp of Engineers' third party rights.
In addition to asserting status as a third-party beneficiary, non-clients often assert claims sounding in negligence by arguing that the intermediary directly owed them duties, but breached them.
There, Microsoft brought an action in 2010 for declaratory judgment that Microsoft was a third-party beneficiary of Motorola's RAND commitments to the IEEE and ITU for two groups of SEPs, and Motorola breached its contractual obligation to license those patents to Microsoft on RAND terms.
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.
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.

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