§ 1559 Third-Party Contract Enforcement

This law says that if two people make a contract that is meant to help a third person, that third person can enforce the contract themselves, as long as the original parties haven't cancelled it.

Key Takeaways

•A third person can enforce a contract if it was written to benefit them.
•They can do this before the original parties cancel the contract.
•The contract must clearly show it was intended for the third person's benefit.

Example

Alice and Bob sell their house and promise in writing to pay their friend Charlie $500 as a thank‑you, and they write the promise into the sale contract.

Charlie can go to court and demand the $500 even though he didn't sign the contract, because the contract was made for his benefit and the sellers haven't taken it back yet.

This law says that if two people make a contract that is meant to help a third person, that third person can enforce the contract themselves, as long as the original parties haven't cancelled it.

Key Takeaways

•A third person can enforce a contract if it was written to benefit them.
•They can do this before the original parties cancel the contract.
•The contract must clearly show it was intended for the third person's benefit.

Example

Alice and Bob sell their house and promise in writing to pay their friend Charlie $500 as a thank‑you, and they write the promise into the sale contract.

Charlie can go to court and demand the $500 even though he didn't sign the contract, because the contract was made for his benefit and the sellers haven't taken it back yet.

Key Takeaways

Example

Key Terms

References

§ 1559 Third-Party Contract Enforcement

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References