In a Third-Party Beneficiary Contract, the Third Party's Rights Arise

question 68

True/False

In a third-party beneficiary contract, the third party's rights arise after the original contract is formed.

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Definitions:

Right to Sue

The legal right of an individual or entity to bring a lawsuit against another party in a court of law.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party.

Bilateral Contract

An agreement involving two parties where each side has made a promise to the other.

Quasi-Contract

An obligation imposed by law in the absence of a formal contract to prevent unjust enrichment.