<P> A third - party beneficiary , in the law of contracts , is a person who may have the right to sue on a contract , despite not having originally been an active party to the contract . This right , known as a ius quaesitum tertio , arises when the third party ( tertius or alteri ) is the intended beneficiary of the contract , as opposed to a mere incidental beneficiary ( penitus extraneus ) . It vests when the third party relies on or assents to the relationship , and gives the third party the right to sue either the promisor ( promittens , or performing party ) or the promisee ( stipulans , or anchor party ) of the contract , depending on the circumstances under which the relationship was created . </P>
<P> A third - party beneficiary , in the law of contracts , is a person who may have the right to sue on a contract , despite not having originally been an active party to the contract . This right , known as a ius quaesitum tertio , arises when the third party ( tertius or alteri ) is the intended beneficiary of the contract , as opposed to a mere incidental beneficiary ( penitus extraneus ) . It vests when the third party relies on or assents to the relationship , and gives the third party the right to sue either the promisor ( promittens , or performing party ) or the promisee ( stipulans , or anchor party ) of the contract , depending on the circumstances under which the relationship was created . </P>
the condition that exists when a contract is made with the purpose of benefiting the third party
the condition that exists when a contract is made with the purpose of benefiting the third party
ius quaesitum tertio
ius quaesitum tertio