Asked by Nicholas Maynard on May 26, 2024
Verified
In a third-party beneficiary contract, the third party's rights arise at the time the contract is formed.
Third-Party Beneficiary
An individual or entity that stands to benefit from a contract, despite not being a direct party to the agreement.
Contract Formed
The point at which an agreement becomes legally binding, after all parties meet the necessary legal requirements.
- Explain the formation and rights of a third-party beneficiary in a contract.
Verified Answer
AO
Aurelia OridaMay 26, 2024
Final Answer :
True
Explanation :
In a third-party beneficiary contract, the third party's rights arise at the time the contract is formed, as the contract is intended to benefit them either directly or indirectly, granting them enforceable rights upon its execution.
Learning Objectives
- Explain the formation and rights of a third-party beneficiary in a contract.