What is a third-party beneficiary?

A third-party beneficiary is a person, company, or organization that is not one of the main parties in a contract, but who has a legal right to enforce that contract if necessary. In South Carolina, a third-party beneficiary is considered an intended beneficiary of the contract, even if they are not specifically mentioned in the document. The purpose of a third-party beneficiary is to help protect the rights of the individual or organization that the contract is intended to benefit, even if they are not a signatory of the contract. For example, if a parent contracts with a school to provide educational services for their child, the child may be considered a third-party beneficiary of the contract. This means that, if the school does not provide the services specified in the contract, the child can enforce the contract and seek compensation from the school. In South Carolina, third-party beneficiaries have the same rights as the two primary parties in a contract, and can sue for breach of contract if necessary.

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