Who is a Third Party Beneficiary?
Sept-Oct-06 Illinois courts have long recognized that contracts can provide a benefit to a third person. However, in recent years the law regarding when a third party may sue for breach of contract has changed. In 1997, in the case Olson v. Etheridge et al, the Illinois Supreme Court adopted the modern vesting rule, making it more difficult for a third party beneficiary to prevail on a breach of contract suit. The modern vesting rule allows parties to a contract to amend or rescind their agreement so long as there is no detriment to a vested third party beneficiary. In Olson, the sellers sold all of their stock in their business to a group of buyers pursuant to a stock purchase agreement and a promissory note. One of the buyers (“Buyer I”) later sold his stock to Buyer II, subject to Buyer I’s original agreement with the sellers. Buyer II began making payments to sellers, but later entered into an assumption agreement with Buyer I, resulting in the discharge of Buyer II’s obligation to
Related Questions
- Are checks from the pooled trust issued to the beneficiary or directly to the third party providing the service?
- Do Self-Settled Trusts and Third Party Trusts Work In The Same Way During the Beneficiary’s Lifetime?
- When will the fund be credited at the Beneficiarys account for Thrid Party Account Transfer?
