Description
The law has traditionally greatly limited the third party rights in contracts. Why do you think this is the case?
Explanation & Answer
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Just outsiders who are "planned recipients" have enforceable contract rights. Keeping in mind the end goal to qualify as a proposed recipient the outsider must meet two prerequisites; (1) the outsider must demonstrate that acknowledgment of a privilege to execution in the recipient is suitable to effectuate the expectation of the gatherings and (2) the execution of the guarantee will fulfill a commitment of the promisee to pay cash to the recipient or the circumstances show that the promisee expects to give the recipient the advantage of the guaranteed execution.
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