This article posted on our partner site Mondaq.com discusses a recurring problem of parties purporting to bind third parties to a contract. The author makes it clear that merely mentioning an individual or entity in a contract is insufficient to legally bind the individual or entity. Drafters who wish to create enforceable obligations should have the individual or entity sign the contract, although other measures can achieve this effect (e.g. “cause” the third party to take action, include a “trigger”, or consequence for mis-action or non-action by the third party).

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!

 

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