A third party is:
A) the party to which a contractual agreement is meant to benefit.
B) a person, or persons, who are unintentionally affected by a market transaction.
C) the third person in a three-way contract.
D) the person who owns the property right in a contract.
E) when the government attempts to mediate a dispute between management and labor.

Question

Quizplus · Accepted Answer

A third party is a person or entity that is not directly involved in a market transaction or contractual relationship, but may be affected by it. This can include unintended consequences or externalities, such as pollution or noise from a factory affecting nearby residents. Option A refers to the beneficiary of a contract, Option C refers to a specific type of contract, Option D incorrectly defines ownership of property rights, and Option E refers to government intervention in labor disputes, which may or may not involve a third party.

A Third Party Is