Third Party Beneficiaries: Discussions in Contracts Podcast

This podcast discusses the topic of Third Party Beneficiaries. When can a person who is not party to a contract sue to enforce the contract? While the rule can be found in Restatement (Second) of Contracts § 302, it can be difficult to apply. This podcast explains how to determine the intent of the parties when considering whether the third party is a third party beneficiary. Concepts covered in this podcast include an incidental beneficiary, creditor beneficiary, and an intended beneficiary. The podcast includes the analysis for several hypotheticals and Lawrence v. Fox, 20 N.Y. 268 (1859). 

Learning Outcomes

On completion of the podcast, the student will be able to:

1. Identify when a party is a third party beneficiary of a contract with rights to enforce the contract and when they are merely an incidental beneficiary with no rights to enforce it.
2. Explain the court’s analysis in Lawrence v. Fox.
3. State the rule from Restatement (Second) of Contracts § 302.
4. State an example indicating the “intent of the parties.”