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Foundational Principles of Contract Law$
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Melvin A. Eisenberg

Print publication date: 2018

Print ISBN-13: 9780199731404

Published to Oxford Scholarship Online: October 2018

DOI: 10.1093/oso/9780199731404.001.0001

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Third-Party Beneficiaries

Third-Party Beneficiaries

(p.741) Fifty-Five Third-Party Beneficiaries
Foundational Principles of Contract Law

Melvin A. Eisenberg

Oxford University Press

Chapter 55 concerns third-party beneficiaries. A third-party beneficiary is a person who is not a party to a contract but would benefit by its performance. The principle that should determine whether any given third-party beneficiary should have power to enforce a contract as follows: A third-party beneficiary should have the right to enforce a contract if but only if: (I) allowing the beneficiary to enforce the contract is a necessary or important means of effectuating the contracting parties’ objectives as manifested in the contract read in the light of surrounding circumstances; or (II) allowing the beneficiary to enforce the contract is supported by reasons of policy or morality independent of contract law and would not conflict with the contracting parties’ performance objectives.

Keywords:   third-party beneficiaries, effectuating parties’, objectives, contracting parties, policy, morality

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