A Third Party Beneficiary Agreement

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A Third Party Beneficiary Agreement



A creditor can sue both the promise and the promise, but the beneficiary cannot recover them against both. If the appeal against one party is successful, the other party is dismissed. Since the creditor benefits from the promisor`s benefit to honor the promising`s debt, the omission of the promisor means that the beneficiary can still pursue the promise to recover the existing debt. Failure of the benefit simply means that the debt has never been paid. To obtain rights from third parties, certain contractual criteria must be met to prove a good: a third party is, under contract law, a person who may have the right to lodge a complaint against a contract when he was not originally an active party to the contract. This right, called ius quaesitum tertio[1], arises when the third party (tertius or alteri) is the beneficiary of the envisaged contract and not a mere random beneficiary (penitus extraneus). It gives the third party the right to sue either the promiser (promoter or performing party) or the promisor (stipulans or anchor) of the contract, depending on the circumstances in which the relationship arose. Under Massachusetts law, a contract does not confer the status of third party beneficiary, unless the “language and circumstances of the contract” show that the parties to the contract “clearly and definitively” intended to provide the recipient with the promised benefit. A random beneficiary is a party that can benefit from the performance of the contract, although this is not the intention of one of the parties. For example, if Andrew hires Bethany to renovate his house and insists that she use a particular house painter, Charlie, because he has an excellent reputation, then Charlie is a fortuitous beneficiary. Neither Andrew nor Bethany take the contract with the particular intention of using Charlie. .

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