In determining whether a party is an incidental or intended beneficiary, one factor courts consider is whether the contract directly states that the third party is the benefiting party.

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Courts often look at whether the contract explicitly identifies a third party as a beneficiary to determine if they are an incidental or intended beneficiary. If the contract directly states that the third party is to benefit, this strongly suggests they are an intended beneficiary.

In Determining Whether a Party Is an Incidental or Intended