Incidental Beneficiaries
Incidental beneficiaries are individuals or parties who may benefit from a contract between two other parties, but the contract was not specifically intended to benefit them. Unlike intended beneficiaries, who have legal rights to enforce the contract, incidental beneficiaries have no such rights and cannot claim benefits. Their benefit is merely a byproduct of the contract, not the purpose of it. For example, if a contractor builds a park as part of a contract, nearby residents may enjoy the park but are incidental beneficiaries without a legal claim to enforce the contract.
Additional Insights
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Incidental beneficiaries are individuals or entities that may gain an indirect benefit from a contract or agreement made between two other parties. They were not intended to receive any advantages from the arrangement, nor do they have any legal rights to enforce it. For example, if a company builds a highway, local businesses may benefit from increased traffic, but they are incidental beneficiaries because they are not parties to the contract for the highway construction. While they benefit, they cannot sue if the contract is not performed as intended.