third party

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Third Party

A generic legal term for any individual who does not have a direct connection with a legal transaction but who might be affected by it.

A third-party beneficiary is an individual for whose benefit a contract is created even though that person is a stranger to both the agreement and the consideration. Such an individual can usually bring suit to enforce the contract or promise made for his or her benefit.

A third-party action is another name for the procedural device of Impleader, which is used in a civil action by a defendant who wants to bring a third party into a lawsuit because that party will ultimately be liable for all, or part of, the damages that may be awarded to the plaintiff.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

third party

n. a person who is not a party to a contract or a transaction, but has an involvement (such as a buyer from one of the parties, was present when the agreement was signed, or made an offer that was rejected). The third party normally has no legal rights in the matter, unless the contract was made for the third party's benefit.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.

third party

a party who is a stranger to a transaction or proceeding between two other persons.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
Even with these reforms, moving to a third-party payer system would still require a tremendous change in thinking about what is necessary to ensure the integrity of the audit process.
Facts: An employer does not have an approved Form 2678 in place with respect to a third-party payer. However, the IRS has designated, pursuant to Regs.
They therefore have no direct bearing on medical schemes (third-party payers in the private healthcare sector), which are regulated by the Medical Schemes Act (Act 131 of 1998, as amended).
The days in which it has been possible for behavioral health providers to exist primarily on grant funds, while avoiding the perceived hassles and expense of working with third-party payers are numbered, says David Lloyd, President of MTM Services (Holly Springs, NC).
In exchange, the third-party payer has no influence over the recovery process other than the opportunity to make a claim (or object) at the end of the claims procedure.
Other providers are having patients sign financial waivers and are "balance billing" the patient, even though in many instances this is prohibited in their signed contracts with third-party payers. So an already fragmented system, with the addition of several new vaccine mandates, might become enveloped in complete chaos for the 50% of the population dependent on the private sector!
No rule requires a client or a third-party payer to fund any course of action that a lawyer recommends.
Allows Indian tribes and tribal organizations, and Alaska Native health organizations that contract or compact for the operation of a hospital IHS clinic or Alzheimer's facility, to directly bill and receive reimbursement for health care services provided for which payment is made under Medicare and Medicaid of the Social Security Act or from any other third-party payer. Directs the Secretary, acting through the IHS and Indian tribes and tribal organizations, to consolidate certain existing programs into a new program of comprehensive behavioral and mental health, prevention, treatment, and aftercare for Indian tribes.
A confidential survey mailed to 169 internists around the country found that most would support deception of a third-party payer to provide warranted care for patients; however, physician support declined as the severity of the condition declined.
Currently, pay for performance is a hot topic because of trial balloons floated by federal officials suggesting that pay for performance might become part of third-party payer policies for paying doctors and hospitals.
If a defendant pays a qualified assignee for assuming its liability, the amount received will not be taxable to the assignee, except to the extent it exceeds the aggregate cost of the "qualified funding asset." Payments by the third-party payer of the periodic payments will not alter the tax-free nature of the stream of periodic payments.
The complexities of CPT and ICD-9-CM coding; managed care; CMS-855 forms that are frequently required; federal, state, and local laws; and third-party payer requirements make the care and healing of the sick the easiest and, of course, the most gratifying part of our day.