Which statement best identifies the '3rd Party' in a third-party beneficiary contract?

• A. The third-party beneficiary who stands to gain enforcement rights
• B. The Promisor
• C. The Promisee
• D. The Obligor

Answer: (A)

In a third-party beneficiary contract, the person identified to benefit from the promise is the one who has enforcement rights against the promisor. This is the individual who stands to gain from the contract and can sue to enforce the promised performance, even though they aren’t originally a party to the agreement. The other roles are the contract participants: the promisor is the one who makes the promise to perform, the promisee is the person who obtains that promise, and the obligor is the party obligated to perform (often the promisor). The key idea is that the third party is the intended beneficiary who can enforce the contract because the promise was made for their benefit.