A person, who is not a party to a contract but is intended by the contracting parties to benefit as a consequence of a contract, is termed a(n):
A) third party beneficiary.
B) incidental beneficiary.
C) official receiver.
D) arbitrator.

Question

Quizplus · Accepted Answer

A person who is not a party to a contract but is intended by the contracting parties to benefit as a consequence of a contract is called a third-party beneficiary. They may have rights under the contract and can sue to enforce those rights in certain circumstances. An incidental beneficiary, on the other hand, is someone who unintentionally benefits from a contract but does not have any enforceable rights under it. Official receiver and arbitrator are not relevant to this concept.

A Person, Who Is Not a Party to a Contract