Demystifying Contractual Terms For Charities: Third Party Rights

When can someone who is not party to a contract enforce its terms. Third party rights and contractual terms.

Background: Third Party Rights

It is commonly understood that when two parties enter into an agreement, such as for the provision of services by one to the other, they can each enforce the terms of that agreement against the other (e.g. where the other is in breach of the terms of that agreement, such as for failing to pay or deliver something). However, what is less well known, is that there are circumstances in which a third party, being somebody (either an organisation or individual) who is not party to a contract but on whom that contract confers a benefit (e.g. to receive something), can enforce the terms of that contract against the parties to it.