Brief Fact Summary. Daniel Tweeddale (Defendant) made an agreement with his mother. Their agreement provided that if Defendant sold the land, he would give his mother$1,350.00, his sister $50.00 and his brother (Plaintiff), $100.00.
Synopsis of Rule of Law. A third party beneficiary’s rights in a contract do not vest until the beneficiary becomes aware of them.
Issue. Should Plaintiff receive the $100.00?
For a third party to benefit under a contract, the third party must be privy to the contract. In this case, Plaintiff never knew about the contract until it was rescinded. Thus, he never became privy to the contract or changed his position so that he would suffer if the contract were rescinded.
Discussion. A third party beneficiary does not have any rights under a contract until the beneficiary knows about the contract