Creditor Beneficiaries

Creditor beneficiaries are individuals or entities that benefit from a contract made between two parties because that contract helps them receive payment or a benefit owed to them. For instance, if Person A owes money to Person B and Person A signs a contract with Person C to pay a part of that debt, Person C is a creditor beneficiary. They can enforce the contract to ensure they receive what is owed, even though they are not a party to the original agreement. Essentially, they have legal rights to benefits specified in the contract.