Nolo's Plain-English Law Dictionary
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- Third-Party Beneficiary
- A person who is not a party to a contract, but has legal rights to enforce the contract or share in proceeds because the contract was specifically intended for that person's benefit. For example, a grandparent contracts to buy a car for a grandchild. If the seller refuses to go through with the deal after receiving payment, the grandchild may sue, even though not a party to the contract. Compare: incidental beneficiary.