Contract Law: The Rule of Third Party Beneficiaries Enforcing an Agreement

Subscribe for weekly legal videos and visit us at https://lawshelf.com/videocoursesview for more LawShelf resources! LawShelf is a project of National Paralegal College https://nationalparalegal.edu.

When people think of contracts, they assume that there are only two parties involved. Contract law is not always that simple, though. There can be other parties that stand to benefit from a contract’s performance and can be hurt by its breach. The outside party is known as a “third-party beneficiary.” As early as 1806, American courts started recognizing that third-party beneficiaries have legal rights. In the seminal case, Lawrence v. Fox, Holly loaned $300 to Fox and Fox agreed to pay the $300 to Lawrence to satisfy a debt that Holly owed Lawrence. The New York Court of Appeals found that Lawrence was an intended third-party beneficiary of the contract who had rights and could enforce the contract between Holly and Fox to recover the $300.

National Paralegal College offers undergraduate programs leading to a paralegal certificate, paralegal associate’s degree, bachelor’s degree in legal studies, bachelor’s degree in business administration, or joint program in legal and business studies. In addition, the graduate division of NPC offers a Master of Science in Legal Studies, a Master of Science in Compliance Law, and a Master of Science in Taxation. Start your 2-week no-cost trial enrollment today: https://nationalparalegal.edu/ApplicationSelect.aspx

Видео Contract Law: The Rule of Third Party Beneficiaries Enforcing an Agreement канала LawShelf