Third-party rights clause: Copy, customize, and use instantly
Introduction
A third-party rights clause decides if people or companies not directly part of the contract (third parties) can enforce its terms. It clarifies who benefits from the agreement and helps avoid unexpected liabilities.
Below are third-party rights clause templates for different situations. Copy, customize, and include them in your contract.
Exclusion of third-party rights clause
This clause explicitly excludes third parties from benefiting under the agreement.
This agreement is made solely for the benefit of the parties hereto and their permitted successors and assigns. No third party shall have any rights under this agreement to enforce any term or provision, whether pursuant to the Contracts (Rights of Third Parties) Act 1999 or otherwise.
Limited third-party rights clause
This clause grants rights to specified third parties only.
Except as otherwise expressly provided, this agreement does not confer any rights or remedies upon any person or entity other than the parties to this agreement. Notwithstanding the foregoing, [specific third party] is entitled to enforce [specific provision] under the Contracts (Rights of Third Parties) Act 1999.
Broad third-party rights clause
This clause permits third parties to enforce any terms of the agreement unless explicitly excluded.
Subject to the terms of this agreement, any third party expressly identified herein shall have the right to enforce the provisions of this agreement as if they were a party to it, in accordance with the Contracts (Rights of Third Parties) Act 1999 or applicable laws.
Third-party rights with consent clause
This clause allows third parties to benefit only with explicit consent.
No third party shall have the right to enforce any terms of this agreement unless such third party is expressly named herein and has provided written consent to be bound by its terms.
Third-party rights for indemnity clause
This clause allows third parties to enforce indemnity provisions.
Notwithstanding any other provision of this agreement, the indemnification obligations under [specific section] may be enforced by [specific third party] in accordance with applicable laws, including the Contracts (Rights of Third Parties) Act 1999.
Exclusion of statutory third-party rights clause
This clause ensures no statutory rights apply to third parties unless expressly stated.
No provision of this agreement shall be construed to confer any rights or remedies under the Contracts (Rights of Third Parties) Act 1999 or similar statutes, except as expressly provided herein.
Third-party rights for warranties clause
This clause limits third-party rights to specific warranties.
This agreement does not confer any rights upon third parties except for [specific third party], who may enforce the warranties provided in [specific section] in accordance with applicable laws.
Conditional third-party rights clause
This clause ties third-party rights to the fulfillment of specific conditions.
Third parties shall have no rights under this agreement unless and until [specific conditions] are fulfilled, at which point [specific third party] may enforce [specific provision].
No liability to third parties clause
This clause clarifies that third parties cannot hold the parties liable under the agreement.
Nothing in this agreement shall create any obligation or liability on the part of either party to any third party, nor confer any rights upon any third party to enforce its terms.
Joint third-party rights clause
This clause grants rights to multiple third parties for a shared interest.
This agreement grants enforcement rights to [specific third parties] jointly, but only with respect to the obligations outlined in [specific section], and not for any other provisions.
Third-party rights with time limitation clause
This clause allows third parties to enforce rights but only for a specific period.
Any third-party rights granted under this agreement must be exercised within [specific time period] from the date of this agreement. After this period, no third party shall have any enforceable rights.
Third-party rights for specific remedies clause
This clause limits third-party rights to specific remedies outlined in the agreement.
A third party named in this agreement may enforce only the remedies explicitly provided under [specific section] and shall have no other rights or claims under this agreement.
Third-party rights for regulatory compliance clause
This clause grants rights to regulators to ensure compliance.
This agreement grants [specific regulatory body] the right to enforce the terms of [specific section] solely for the purpose of ensuring compliance with applicable regulations.
Exclusion of implied third-party rights clause
This clause explicitly prevents any implied rights for third parties.
No term of this agreement shall be construed to imply any rights or obligations in favor of third parties unless explicitly stated herein.
Joint third-party rights clause
This clause allows enforcement of specific rights by multiple third parties together.
The rights granted under [specific section] may be jointly enforced by [list of specific third parties] but not individually or by any other party.
Third-party rights with notification requirement clause
This clause conditions third-party rights on formal notification.
A third party may enforce the terms of this agreement only after providing written notice to the parties to this agreement, specifying the rights being enforced and the basis for enforcement.
Restricted third-party rights clause
This clause limits third-party rights to specific entities and purposes.
Only [specific third party or category of third parties] may enforce the terms of this agreement, and solely for the purposes set forth in [specific section].
Third-party rights for escrow arrangements clause
This clause grants rights to escrow agents for specific duties.
The escrow agent identified herein shall have the right to enforce the provisions of [specific section] related to the release and management of escrow funds.
Third-party rights with arbitration clause
This clause allows third parties to enforce rights through arbitration only.
Any third party named in this agreement may enforce its rights exclusively through binding arbitration under the terms of [specific section].
Temporary third-party rights clause
This clause grants enforceable rights to a third party for a limited term.
[Specific third party] shall have the right to enforce the provisions of this agreement for a period of [specific time period], after which all third-party rights shall automatically terminate.
Revocation upon breach clause
This clause revokes third-party rights if they fail to meet specific conditions.
Any third-party rights granted under this agreement shall immediately terminate if the third party breaches the conditions set forth in [specific section].
Third-party rights for insurance beneficiaries clause
This clause grants specific enforcement rights to a third party designated as an insurance beneficiary.
[Specific third party] is entitled to enforce the provisions of this agreement related to insurance coverage under [specific section], solely to the extent necessary to claim benefits under the designated policy.
Third-party rights for data protection compliance clause
This clause allows data subjects to enforce rights related to personal data protection.
Any individual whose personal data is processed under this agreement shall have the right to enforce the obligations set forth in [specific data protection section], limited to ensuring compliance with applicable data protection laws.
Third-party rights for supply chain disputes clause
This clause grants limited rights to subcontractors in supply chain agreements.
Subcontractors identified in [specific section] may enforce payment terms related to services rendered under this agreement but shall have no rights regarding any other provisions.
Third-party rights for intellectual property licensing clause
This clause grants enforcement rights to a third party named as an IP licensee.
The licensee identified in [specific section] may enforce the intellectual property rights granted under this agreement, including but not limited to ensuring non-infringement by the licensor or any other party.
Third-party rights for environmental compliance clause
This clause allows enforcement of specific environmental obligations by designated third parties.
The environmental monitoring agency named in [specific section] shall have the right to enforce the obligations related to environmental compliance set forth in this agreement.
Third-party rights for performance bonds clause
This clause grants enforcement rights to beneficiaries of a performance bond under the agreement.
The beneficiary identified in [specific section] may enforce the terms of this agreement solely to ensure compliance with the obligations guaranteed under the associated performance bond.
Third-party rights for employee benefits clause
This clause allows employees to enforce specific rights under the agreement.
Employees of [specific party] are entitled to enforce the provisions of this agreement related to employee benefits outlined in [specific section], but not any other terms of this agreement.
Third-party rights for utility providers clause
This clause grants enforcement rights to utility providers for payment and access terms.
The utility provider identified in [specific section] may enforce the terms of this agreement regarding payment for services and access to facilities, as necessary to provide uninterrupted service.
Third-party rights for security interest holders clause
This clause allows enforcement of specific rights by a secured creditor.
The security interest holder named in [specific section] may enforce the provisions of this agreement necessary to protect or realize its interest in the secured assets.
Third-party rights for audit provisions clause
This clause grants auditors rights to enforce access and cooperation provisions.
The auditor identified in [specific section] may enforce the access and cooperation obligations under this agreement solely to perform the agreed-upon audit activities.
Third-party rights for trade credit insurers clause
This clause permits trade credit insurers to enforce reimbursement or repayment terms.
The trade credit insurer named in [specific section] may enforce the provisions related to repayment or reimbursement under this agreement in the event of a default by [specific party].
Third-party rights for franchisors clause
This clause grants franchisors specific enforcement rights in franchise-related agreements.
The franchisor identified in [specific section] may enforce the provisions of this agreement related to brand compliance, operational standards, and royalty payments.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.