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 ?
Department for International Development (DFID) has contracted Oxford Policy Management (OPM) to execute the third-party beneficiary feedback, operational review and monitoring assignment for BISP cash transfer programs.
The court also rejected McKesson's argument that the third-party beneficiary doctrine arising under contract law provided McKesson with the requisite mutuality to allow its triangular setoff, McKesson had argued that MPRS was a third-party beneficiary of the Distribution Agreement that created a mutuality of debts because MPRS was a counterparty with the Debtor on both the Distribution Agreement and Master Services Agreement.
He added that by creating a new cause of action, the court was "preserving the lawyer's allegiance to the insured." <br />Thomas Pendarvis, a Beaufort lawyer who represented the third-party beneficiary in Fabian, agreed with the Supreme Court's decision in Sentry, though he found it "curious" that the court had decided against identifying a specific legal theory for recovery.
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.
(Editor's Note: The Michigan Court of Appeals ruled that a plaintiff wounded by gunfire at an apartment complex was not the third-party beneficiary of a contract with a security company to provide guards for the premises.]
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.
Evidence was insufficient to support joint and several liability of landlords to developer-tenants for breach of ground leases with respect to two parcels of property on which joint development was planned under a third-party beneficiary theory.
These circumstances include incorporation by reference, alter ego, equitable estoppel, third-party beneficiary, and agency.

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