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Editing Contracts/Third-party beneficiary
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{{:Contracts/TOC | {{:Contracts/TOC}} | ||
A '''third-party beneficiary''', in the [[law]] of [[contract]]s, is a person who may have the right to sue on a contract, despite not having originally been an active [[party (law)|party]] to the contract. This right, known as a ''ius quaesitum tertio'',<ref>{{cite web|url=http://www.legal-glossary.org/jus-quaesitum-tertio/ |title=Legal Definition of ius quaesitum tertio |publisher=legal-glossary.org |date= |accessdate=2014-09-12}}</ref> arises when the third party (''[[tertius (law)|tertius]]'' or ''alteri'') is the <u>intended beneficiary</u> of the contract, as opposed to a mere incidental beneficiary (''penitus extraneus''). It [[vesting|vests]] when the third party relies on or assents to the relationship, and gives the third party the right to sue either the promisor (''promittens'', or performing party) or the promisee (''stipulans'', or anchor party) of the contract, depending on the circumstances under which the relationship was created. | A '''third-party beneficiary''', in the [[law]] of [[contract]]s, is a person who may have the right to sue on a contract, despite not having originally been an active [[party (law)|party]] to the contract. This right, known as a ''ius quaesitum tertio'',<ref>{{cite web|url=http://www.legal-glossary.org/jus-quaesitum-tertio/ |title=Legal Definition of ius quaesitum tertio |publisher=legal-glossary.org |date= |accessdate=2014-09-12}}</ref> arises when the third party (''[[tertius (law)|tertius]]'' or ''alteri'') is the <u>intended beneficiary</u> of the contract, as opposed to a mere incidental beneficiary (''penitus extraneus''). It [[vesting|vests]] when the third party relies on or assents to the relationship, and gives the third party the right to sue either the promisor (''promittens'', or performing party) or the promisee (''stipulans'', or anchor party) of the contract, depending on the circumstances under which the relationship was created. | ||
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==Intended v. incidental beneficiary== | ==Intended v. incidental beneficiary== | ||
In order for a third party beneficiary to have any rights under the contract, he must be an ''intended beneficiary'', as opposed to an ''incidental beneficiary''. | In order for a third party beneficiary to have any rights under the contract, he must be an ''intended beneficiary'', as opposed to an ''incidental beneficiary''. The burden is on the third party to plead and prove that he was indeed an intended beneficiary. | ||
===Incidental beneficiary=== | ===Incidental beneficiary=== |