Define: Intended Beneficiary

An intended beneficiary refers to a person or entity who is not a party to a contract but is intended to benefit from the contract’s performance.

To become an intended beneficiary, the contract must explicitly state the intention to confer a benefit on the person or entity. This can be done through clear language or by demonstrating the parties’ intent through other evidence.

An intended beneficiary typically has the right to enforce the contract and seek remedies for any breach. They may also have the right to receive the benefits outlined in the contract.

Yes, an intended beneficiary can sue for damages if the contract is breached. They may seek compensation for any losses or harm suffered as a result of the breach.

Generally, an intended beneficiary does not have the power to modify or terminate the contract unless specifically granted such rights in the contract itself.

In some cases, an intended beneficiary may be able to assign their rights to another person or entity. However, this is subject to the terms of the contract and any applicable laws or restrictions.

Yes, an intended beneficiary can enforce the contract against the promisor if the contract clearly identifies them as an intended beneficiary and confers enforceable rights upon them.

Typically, an intended beneficiary cannot sue the promisee for breach of contract unless the promisee has also breached a separate duty owed directly to the intended beneficiary.

In some cases, an intended beneficiary may be able to seek specific performance, which is a court order requiring the promisor to fulfill their obligations under the contract. However, this remedy is subject to the court’s discretion and may not always be granted.

In certain circumstances, the parties to a contract may include provisions that exclude or disclaim intended beneficiaries from receiving benefits. However, such exclusions or disclaimers must be clearly stated in the contract and comply with applicable laws to be enforceable.