The promise benefiting a thirdparty to a contract does not have to be for the sole benefit of the thirdparty to confer third-partybeneficiary status, as long as it is for the thirdparty’s direct or substantial benefit.
, the Supreme Court of Canada created certain principled exceptions to when a third party may obtain the benefit of protections extended under a contract (effectively, using the contract as a “shield”), but was reluctant to overthrow the rule entirely or give third parties the right to enforce a contract to claim a.
The Appellate Division reinstated the City’s breach of contract claim, holding that the City had raised an issue of fact as to whether it was an intended third-party beneficiary of the Contract. That is where the third party beneficiary comes in.
Yet, six days later, on 24 May 2017, a different Chamber of the Civil Dvisionof the same court applied the 2006 precedent in the case before it. Instead of relying on the contract provisions and common law principles related to first party damages for a breach of contract, you may be liable for both third party and first party damages related to the.
In contract law, a party who was not an original party to a contract may still have the right to sue on the contract in certain situations. If the contract is written for the benefit of another party, then that person is a thirdpartybeneficiary.
Nov 17, 2017 · Legal dictionaries define a “third-partybeneficiary” (“TPB”) as “a person or entity who, though not a party to the contract, stands to benefit from the contract’s performance. disputes" arising from contracts to "provide services to the general public.