A third person does not have the status of an intended third-party beneficiary unless it is clear at the time the contract was formed that the parties intended to impose a direct obligation with respect to the third person.

Question

Quizplus · Accepted Answer

This statement is true. In order for a third person to have the status of an intended third-party beneficiary, it must be clear from the language of the contract or the surrounding circumstances at the time the contract was formed that the parties intended to confer a direct benefit or impose a direct obligation on the third person.

A Third Person Does Not Have the Status of an Intended