Contract Law For Dummies
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A third party is a person who’s not a party to the contract. Common law recognizes three significant third parties:

  • Third-party beneficiary: If the parties to the contract intend a third party to be able to sue for enforcement of a promise made in the contract, then that that person is a third-party beneficiary.

  • Assignee: If a party transfers a right under the contract to a third party, that person is an assignee. The assignor (the one who assigned the rights) drops out of the picture and the obligor (the one who is obligated to perform) must perform for the assignee.

  • Delegate: If a party delegates a duty under the contract to a third party, that person is a delegate. The delegate must now perform the contract, but the delegator (the one who was obligated under the contract to perform) remains liable for performance and breach.

About This Article

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About the book author:

Scott J. Burnham is the Curley Professor of Commercial Law at Gonzaga University School of Law. For 30 years he has taught Contracts at law schools internationally and throughout the U.S. He is also a prolific writer on legal topics and a consultant on contract drafting for numerous businesses.

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