Third-Party Beneficiaries to a Contract

The video tutorial explains the concept of third-party beneficiaries in contracts. It begins by defining a third-party beneficiary and the general rule that contracts are enforceable only between the parties involved. Exceptions occur when a third-party beneficiary is intentionally included. The video distinguishes between donee beneficiaries, who receive benefits as a gift, and creditor beneficiaries, who receive benefits in exchange for a debt. It also clarifies that incidental beneficiaries, who are not intentionally included, have no rights to enforce the contract.

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