Ace the Contracts & Sales Bar Challenge 2026 – Seal the Deal with Style!

In contract law, third-party beneficiaries refer specifically to individuals who stand to benefit from a contract made between two other parties, even though they are not part of that agreement. This legal concept recognizes that while the primary parties to a contract are the ones negotiating and entering into the agreement, there may be other parties who gain advantages or benefits from its execution.

When a contract is established with the intention of benefitting a third party, that third party may have rights to enforce certain aspects of the contract if it was clearly intended for their benefit. This is why option C is the correct answer, as it highlights the essence of what constitutes a third-party beneficiary.

In contrast, the other options do not accurately describe third-party beneficiaries. Individuals involved in negotiating the contract are typically the parties to the contract rather than beneficiaries of it. Individuals who have no rights to enforce the contract cannot be considered beneficiaries, as they lack the necessary stake in the agreement. Lastly, individuals who disapprove of the terms of a contract are not beneficiaries either; their disapproval does not grant them rights or benefits under the contract. Thus, understanding that third-party beneficiaries are those who benefit from the contractual relationship of others is key in grasping this concept in contract law.