What is a third-party beneficiary?

A third-party beneficiary is a person who is not a party to a contract but who is entitled to the benefits of that contract. This means that the third-party beneficiary can legally enforce the terms of the contract. In other words, the third-party beneficiary is a person who is not a party to the contract, but the contract was entered into with the intention of benefiting them. In Arizona, there are a few conditions that must be met for the third-party beneficiary to enforce the terms of the contract. According to Arizona contract law, the third-party beneficiary must be clearly identified in the contract. The parties to the contract must prove the intention to benefit the third-party beneficiary and that the third-party beneficiary must rely on the terms of the contract. Additionally, the third-party beneficiary must not already be a party to the contract. When a third-party beneficiary is legally entitled to the benefit of a contract, they can take legal action to enforce its terms. For example, if a contract was made between two people that states that one must pay the other for an item and the third-party beneficiary was mentioned in the contract, then the third-party beneficiary can take legal action if the payment is not made. In summary, a third-party beneficiary is a person who is not a party to the contract but is legally entitled to the benefits of the contract. In order to be legally entitled to the benefits of a contract in Arizona, the third-party beneficiary must be identified in the contract, prove the intention to benefit them, and rely on the contract. Lastly, the third-party beneficiary must not already be a party to the contract.

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What is a third-party beneficiary?

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