What is the test for determining whether a contract was made for the benefit of a third person?

California, United States of America


The following excerpt is from Estate of Fisher, 198 Cal.App.3d 418, 244 Cal.Rptr. 5 (Cal. App. 1988):

[198 Cal.App.3d 430] " 'The test for determining whether a contract was made for the benefit of a third person is whether an intent to benefit a third person appears from the terms of the contract ...' The intent to make the obligation inure to the benefit of a third party must be clearly manifested by the contracting parties...." (Arata v. Bank of America (1963) 223 Cal.App.2d 199, 205, 35 Cal.Rptr. 703.)

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