incidental beneficiary
incidental beneficiary, defined:
a person or party that benefits from a contract indirectly and is not a contracting party. The incidental beneficiary has a 3rd-party relationship to the actual parties to the contract. As such, the incidental beneficiary has no rights under the contract.
incidental beneficiary, as it might be used:
The employees are an incidental beneficiary to the company's government contracts.
An example of incidental beneficiary:
Ralph owns a small restaurant near a sports complex where, until recently, a professional sports team played. Receipts tripled on game days. Even though the team breached its contract with the city by moving operations to another town, Ralph is told by his lawyer that he has no cause of action because he is an incidental beneficiary of the contract.
|
|
|
Clear-Point Law Dictionary
