Who is defined as a person not a party to a contract but intended to benefit from it?

A third party beneficiary is defined as a person who is not a party to a contract but is intended to benefit from it. This concept arises in contract law when two parties enter into an agreement, and a third party is identified as someone who stands to gain advantages from the contractual relationship, even though they are not directly involved in the contract itself.

The intention of the original parties must be clear that the third party is to receive some benefit. This can be significant in enforcing the contract, as third party beneficiaries may have rights to bring a lawsuit if the contract is breached, depending on the jurisdiction and the specific terms that were intended to benefit them.

In contrast, the other terms would refer to different roles or participants in contractual arrangements. A contractual party refers to those who are actively involved in the agreement—typically the individuals or entities directly signing the contract. An obligee is a party to whom an obligation is owed under a contract, while a principal generally refers to the primary party in a representation or agency relationship. These roles do not capture the essence of someone who is an intended beneficiary of an agreement without direct involvement.