Question

Can someone help me research a current third party beneficiary cases case that involves third-party rights and/or discharge of, and discussion opinion and how the case could have been prevented.

Answer 1

A third party beneficiary is a person other then the two people involved in the contracts who gets benefit from the contract. and he or she gets legal rights to enforce the contract. in other words if the parties to the contract intends to benefit a third party through the contract then the court gives the third party right to enforce the contract and then the person is known as third party beneficiary. he is not a party to the contract himself but he gets benefit once the contract is created. he can be regarded as third party beneficiary only when he gets some kind of benefit from the contract.

Example : suppose a person plans to buy a car for his daughter and gift it to her on her birthday and hence pays certain sum of money as advance to some car dealer, knowing this the girl for whom the car is being purchased sells her old car, but the car dealer fails to offer the car on her birthday then she being the the third party beneficiary can sue the car dealer for specific performance. she only gets this right if she new in advance the benefits that she would get from the contract else she can't be regarded as third party beneficiary. but in above case she sold her old car because she knew that her father is going to gift her a new car on her birthday so she gets legal right to enforce the contract.

the intended beneficiary of the contract needs not to be present while the contract is being created , but the third party needs to have the knowledge of potential benefit from the contract to enforce it. such case can only be avoided if the party to the contract proves that the third party did not had the knowledge about the benefit expected from the contract. and the court explains that such suits are allowed to be brought.