When parties enter into a contract,they can agree that the performance of one of the parties should be rendered to or directly benefit a third party.Under such circumstances,the third party is called an incidental third-party beneficiary.

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An incidental third-party beneficiary is someone who benefits from a contract unintentionally and has no rights to enforce the contract. A third party who is intended to benefit from a contract is called an intended third-party beneficiary.

When Parties Enter into a Contract,they Can Agree That the Performance