Third Party

• Author: Jeffrey Lehman, Shirelle Phelps

Page 19

A generic legal term for any individual who does not have a direct connection with a legal transaction but who might be affected by it.

A third-party beneficiary is an individual for whose benefit a contract is created even though that person is a stranger to both the agreement and the consideration. Such an individual can usually bring suit to enforce the contract or promise made for his or her benefit.

A third-party action is another name for the procedural device of IMPLEADER, which is used in a civil action by a defendant who wants to bring a third...