Which term refers to a person who benefits from a contract but is not a party to it and can enforce it if breached?

• A. Third-party beneficiary
• B. Promisor
• C. Promisee
• D. Privity of contract

Answer: (A)

In contract law, a third-party beneficiary is someone who benefits from a contract between two other parties and can enforce that contract if it’s breached, even though they aren’t a party to the agreement. This only applies when the contract was intended to confer a specific benefit on that person. If the benefit is merely incidental, the third party cannot enforce. This concept distinguishes the beneficiary from the promisor (the party who makes the promise) and the promisee (the party to whom the promise is made and who would typically sue for breach), and it contrasts with privity of contract, which is the idea that only the contracting parties have enforceable rights. So the term for the described person is a third-party beneficiary.