Which factor indicates that a third party is an intended beneficiary?

The identification of a third party as an intended beneficiary is often demonstrated by the performance being rendered directly to that third party. This means that the contract was created with the specific intention of benefiting that third party, and the obligations under the contract are directly aligned to them receiving the benefits stipulated within it. This direct performance is a clear indicator that the third party is more than just an incidental beneficiary; they are a key participant in the contractual arrangement, which reinforces their legal standing to enforce the contract if necessary.

In contrast, the other factors outlined do not demonstrate that the third party is intended to benefit from the contract. For instance, having no control over the contract does not imply that one has a vested interest in its outcomes or benefits. Being unaware of the contract suggests that the third party is not part of the agreement and does not have any claims attached to its performance. Additionally, not having a financial stake does not imply that a third party is intended to benefit; they may not be included in the contractual relationships at all. These aspects highlight why direct performance to the third party serves as a strong indication of their status as an intended beneficiary in the contract.