Third Party Clause Samples

The Third Party clause defines the rights, obligations, or limitations concerning individuals or entities that are not direct parties to the contract. Typically, this clause clarifies whether third parties can benefit from, enforce, or be held liable under the agreement, and may specify exceptions or carve-outs for certain third-party beneficiaries. Its core function is to prevent unintended legal claims or obligations arising from external parties, thereby ensuring that only the contracting parties are bound by or can enforce the contract's terms.