intended beneficiary

the party intended to receive the benefit from a contract, although not an actual party to the contract. The intended beneficiary is a 3rd party who has a special relationship to the contract. The intended beneficiary has no obligation yet is legally entitled to some benefit. An intended beneficiary has the right to take legal action if the benefit is not delivered according to the terms of the contract. Compare this to an incidental beneficiary, whose benefit was not the intention of the contract and therefore has no legal rights under the contract.

Fergus wants to give his wife, Fiona, something nice for Arbor Day, buys a subscription for a flowers-by-the-month group. Fergus gives the group his information as the purchaser and his wife's information as the recipient. Fiona is thereby the intended beneficiary on the contract. If the flowers are not delivered in accordance with the terms of the contract, Fiona would have the legal authority to seek a remedy on her own.