In Texas, can a nonparty enforce a contract?

Prepare for the Texas Contract Law Exam. Study with engaging multiple choice questions, each with explanations. Get ready to excel in your Texas Contract Law Exam!

In Texas, a nonparty can indeed enforce a contract if they qualify as an intended third-party beneficiary. This concept stems from contract law, which recognizes that even though a contract is formed between two parties, there can be individuals or entities who are intended to benefit from the agreement and thus have the right to enforce it.

For a third party to be deemed an intended beneficiary, the original parties to the contract must have expressed an intent to benefit that third party, which can typically be found in the language of the contract itself. This is distinct from an incidental beneficiary, who may benefit from the contract but does not have the right to enforce it because the original parties had no intention to confer a benefit upon them.

The option stating that only the original parties can enforce a contract is not accurate within the context of third-party beneficiaries. Moreover, the stipulation that a nonparty can enforce the contract only by providing additional services is misleading, as enforcement rights are not contingent on such conditions but rather on the status as a third-party beneficiary. Lastly, suggesting that a nonparty can enforce a contract only if there is a written agreement misinterprets the nature of contract enforceability, as it is not the existence of a written document that grants enforcement rights to

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy