What is a third-party beneficiary?

A third-party beneficiary is a person who is not a party to a contract, but who is still legally entitled to benefit from the terms of a contract between two other parties. In Texas, a third-party beneficiary is an individual or entity that is not a signatory to the contract, but will still benefit from the contract in some way. This could be in the form of goods, money, services, or any other type of exchange. The third-party beneficiary is not legally obligated to fulfill any part of the contract, but they will be able to sue the parties to the contract if they fail to carry out their promises. To be a third-party beneficiary, the person must be named in the contract or the intent of the contract must be clear that they will benefit from it. If the parties to the contract are in Texas, then the contract must be made and enforced according to the laws of Texas for the third-party beneficiary to have legal rights.

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