Third Party Beneficiary

Question 1

Third Party Beneficiary

Answer 1

Two people make a contract & someone else benefits aka 3rd party
- usually 3 parties involved in the question

Question 2

Intended 3rd Party Beneficiary

Answer 2

Contracting parties express their interest for 3rd party benefit

Question 3

Incidental 3rd Party Beneficiary

Answer 3

someone is claiming to have a benefit but contracting parties never expressed their intent to benefit the 3rd party
- never had any rights

Question 4

Rights Vesting

Answer 4

an intended 3rd party beneficiary doesn’t have any rights until the rights VEST

Rights vest when:
- 3rd party is informed of the benefit; OR
- 3rd party learns about the benefit and starts to rely on it