Editing Contracts/Third-party beneficiary
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==Vesting of rights== | ==Vesting of rights== | ||
Once the beneficiary's rights have vested, the original parties to the contract are both bound to perform the contract. Any | Once the beneficiary's rights have vested, the original parties to the contract are both bound to perform the contract. Any effort by the promisor or the promisee to rescind or modify the contract at that point are void. Indeed, if the promisee changed his mind and offered to pay the promisor money not to perform, the third party could sue the promisee for [[tortious interference]] with the third party's contract rights. | ||
There are four ways to determine whether the third party beneficiary's rights have vested: | There are four ways to determine whether the third party beneficiary's rights have vested: |