Can a third party enforce a contract if the contract was entered into for the express benefit of the third party?

MultiRegion, United States of America

The following excerpt is from Nerhan v. Shell Oil Co., 911 F.2d 738 (9th Cir. 1990):

A third party may enforce a contract at any time before the parties rescind if the contract was entered into for the express benefit of the third party. Cal.Civ.Code Sec. 1559. The third party can enforce the contract only if it appears to have been the intention of the parties to secure to the third party personally the benefit of the contract's provision. Walters v. Calderon, 25 Cal.App.3d 863, 871 (1972). The fact that a person is named in a contract is not sufficient evidence on its own of parties' intent to benefit the named third party. Id. at 870-71.

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