N.J. Model Civil Jury Charge 4.10B

4.10 BILATERAL CONTRACTS

B. THIRD PARTY BENEFICIARY (Approved 5/98)

Ordinarily a person may not sue for br each of a contract unless the person

is a party to the contract. However, pe rsons may enter into a contract for the

benefit of others. But, a person not a party to a contract may not sue to enforce it

merely because he/she happens to be incidentally benefited by it. Rather, it must

appear that the contract was made by the parties with the intention to benefit the

plaintiff and provide him/he r with enforceable rights. Thus, to establish that

plaintiff is entitled to en force this contract, the plai ntiff must prove that the

original parties to the contract intended the plaintiff to receive a direct benefit

from the contract.

If that intent did not exist, then the plaintiff cannot sue the defendant. It is

not necessary that an intended benefici ary be specifically identified in the

contact. But if the contract does not sp ecifically identify the plaintiff, it is

necessary to examine the pertinent provisions of the contract and the

surrounding circumstances to find whether the parties intended the plaintiff to

receive a direct benefit from the contract.

Cases:

Brooklawn v. Brooklawn Housing Corp. , 124 N.J.L. 73 (E. & A.

1940); Broadway Maintenance Corp. v. Rutgers , 90 N.J. 253

(1982); Worrmann v. Aratusa Ltd. , 266 N.J. Super 471 (App. Div.

1993).