Also known as:third-party · third parties · third-parties · 3rd party
Written by attorneys · grounded in primary & secondary sources — see below
A person who is not a party to a lawsuit, agreement, or other transaction but who is somehow implicated in it. The label applies whether the outsider receives rights, bears burdens, or supplies facts that affect the principal actors.
Sources & Authorities
How it applies
Common Examples
6
Former Law Clerk Seeks New Representation
Tori Taylor served as a judicial clerk on a contract dispute between Terra Financial and Torchlight Media. After leaving the court she joined a firm that now represents Terra Financial in the same matter. The opposing party objects because Taylor participated personally and substantially in the case while clerking.
Defamatory Letter Sent to Outsider
Tyrone Tran wrote a letter accusing Tanner Thompson of embezzlement and mailed it to Thompson's business partner. The partner had no role in the underlying employment relationship between Tran and Thompson. Thompson later sues Tran for defamation based on the letter reaching the partner.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Tiana Tan and her husband held their home as tenants by the entirety. While divorce proceedings were pending Tan executed a will leaving her interest to her sister Theresa Tucker. Tan died before the divorce was final and the tenancy remained intact.
Security Interest Asserted Against Outsider
Talon Security loaned funds to Tidal Energy and took a security interest in Tidal's equipment. Tidal later sold some equipment to an unrelated buyer. Talon Security now claims its interest is enforceable against the buyer because the statutory requirements for attachment were met.
Easement Beneficiary and Repair Obligations
Thaddeus Tran owns land subject to an easement held by Torchlight Media for a pipeline. A separate easement for a road across the same land benefits Terra Financial. Torchlight Media must repair the portion of the servient estate it controls to avoid liability that could affect Terra Financial as a joint user.
Proxy Marriage Ceremony Performed
Tanner Thompson could not attend his own wedding because he was deployed overseas. He executed a written authorization allowing his brother Tyrone Tran to stand in as proxy at the solemnization ceremony. The state recognizes the resulting marriage as valid.
Common questions
Frequently Asked
5
Does the term third party always refer to someone completely unrelated to the main transaction?+
No. A third party is simply anyone outside the principal parties to the agreement or proceeding. The person may still be affected by or involved in the transaction in some way, such as receiving notice, holding rights, or supplying facts that matter to the dispute.
Supporting sources
In defamation, why must the false statement reach a third party?+
Publication to a third party is an essential element of the tort. Without communication to someone other than the plaintiff, the statement causes no reputational harm that the law recognizes.
Can a will override survivorship rights in jointly held property by naming a third party?+
No. Title passes by operation of law to the surviving joint tenant or spouse. A will cannot dispose of the property even if it names a third party as beneficiary, absent wrongful conduct that would support a constructive trust.
When is a security interest enforceable against third parties under the UCC?+
The interest must attach by satisfying the statutory requirements of value given, debtor rights in the collateral, and an authenticated security agreement. Once attached, the interest can bind third parties who later acquire rights in the same collateral.
How does the concept of a third party arise in proxy marriages?+
One spouse authorizes a third party to stand in at the ceremony when the spouse cannot attend. The proxy performs the formal acts of solemnization on behalf of the absent party, creating a valid marriage under statutes that permit the practice.
438 U.S. 104, 98 S.Ct. 2646, 57 L.Ed.2d 631 (1978)Property
…Appellants own the Grand Central Terminal, which has been designated a landmark. They entered into a lease agreement with a third party to construct a multistory office building above the terminal. The Commission rejected the proposed construction, finding that it would destroy the terminal's historic and aesthetic…
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