Third Party Beneficiary Doctrine
The Third-Party Beneficiary Doctrine is a legal principle that allows someone who is not a party to a contract to benefit from that contract. For example, if two people create a contract that promises a payment to a third party, that third party can enforce the contract even though they were not involved in its creation. This doctrine recognizes that contracts can be intended to benefit others, giving those beneficiaries the right to make claims if they are not fulfilled. Essentially, it ensures that promises made in contracts can extend to those who stand to gain from them.
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The Third Party Beneficiary Doctrine is a legal principle that allows someone who is not directly involved in a contract to benefit from its terms. For instance, if two people make a contract where one promises to pay money for services that will benefit a third person, that third person can enforce the contract, even though they didn’t sign it. This doctrine recognizes that certain agreements create rights for those outside the contract, ensuring that those intended to benefit from a deal can seek legal remedies if the terms are not fulfilled.