Intended Beneficiaries

Intended beneficiaries are individuals or groups that a contract specifically aims to benefit, even if they are not a direct party to the agreement. In the context of third-party rights, these beneficiaries can enforce the contract if it is clear that the parties intended to benefit them. For example, if a life insurance policy is taken out, the named beneficiary is an intended beneficiary who can collect the benefits as specified in the policy. This concept allows individuals outside of the contract to have rights and protections based on the intentions of the original parties involved.