Third Party Rights

Contracts and Outsiders: Third-Party Beneficiaries, Agency, and Assignment

It is well established that contracts are effective and enforceable only between the parties to the contract themselves; this is represented in the doctrine of “privity of contract.”1 However, on occasion, contracts may be concluded which involve persons other than those who are present at the bargaining table. Two such instances examined here are those of agency and third-party beneficiaries. Agency pertains to situations where one acts on behalf of another to conclude a contract with a party. Agents themselves do not undertake any obligations or gain any benefit in their own name from the contract which they conclude. Contracts involving ...

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