DefineLaw

What is a third-party beneficiary?

A third-party beneficiary is someone not signing the contract but entitled to its benefit.

Why it matters

It lets a non-signing person enforce the contract in their favor.

Common confusion

They did not sign, but they can still sue if the contract named them as a benefit.

DefineLaw editors — plain-English definitions for general reference; not a substitute for advice from a licensed attorney.

Frequently Asked Questions

Can a stranger enforce my contract?

Only if the contract clearly intended to benefit them.

What is an intended beneficiary?

One the parties meant to benefit, who can then sue.

Is a mere incidental beneficiary protected?

No — only intended beneficiaries can enforce.

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