Also known as:third-person · third persons · third party
Written by attorneys · grounded in primary & secondary sources — see below
A person who is not a direct party to a transaction, agreement, or legal proceeding but who may be affected by it or hold related rights or obligations. The term identifies an outsider whose interests or conduct can trigger duties, liabilities, or protections for the primary actors.
Sources & Authorities· 40 primary sources
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Cases
Statutes
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Common Law
How it applies
Common Examples
6
Lawyer Safeguards Third-Person Funds
Tiana Tan hired attorney Tracy Torres to settle an insurance claim. Torres received settlement proceeds that belonged partly to Tiana and partly to hospital lienholder Threshold Capital. Torres placed the entire sum in her personal operating account instead of a trust account. The commingling violated the duty to segregate third-person property from the lawyer's own funds.
Apparent Authority Binds Principal to Third Person
Thunderbolt Motors let sales manager Taliah Tang use company letterhead and attend client meetings without disclaimers. Taliah signed a financing agreement with buyer Thomas Thompson on Thunderbolt letterhead. Thomas reasonably believed Taliah spoke for the dealership. The dealership is bound because its manifestations created apparent authority in dealings with the third person.
Landlord Escapes Liability for Third-Person Damage
Tori Taylor leased an apartment from Talon Security under a residential lease. Vandals broke in and damaged the unit. The lease contained no contrary agreement. Because the damage resulted from the conduct of third persons rather than the landlord's failure to meet housing codes, the landlord owes no repair obligation.
Battery Liability Extends to Third Person
Tristan Thompson swung a fist intending to strike his coworker but missed and hit bystander Taliah Tang instead. Tristan acted with intent to cause harmful contact with another person. Because the blow landed on the third person, Tristan is liable to Taliah for battery.
Thomas Thompson bought a house from seller Tori Taylor. Bank Tidal Energy supplied the purchase funds and took a mortgage on the same day title passed. The mortgage qualifies as a purchase-money mortgage because the loan proceeds enabled acquisition of the real estate from a third-party lender.
Will Cannot Override Joint Tenancy for Third Person
Tracy Torres and her husband held their home as tenants by the entirety. While divorce proceedings were pending, Tracy executed a will leaving the house to her sister Tiana Tan. Tracy died before the divorce was final. Title passed by operation of law to the surviving spouse. The will could not dispose of the property to the third person.
Common questions
Frequently Asked
5
When must a lawyer notify a third person about funds in which the third person holds an interest?+
A lawyer must promptly notify the third person upon receiving funds or other property in which the third person has an interest. The lawyer must also deliver the funds or property the third person is entitled to receive and render a full accounting on request.
Supporting sources
Does a principal's internal suspension of an agent's authority automatically end apparent authority as to third persons?+
No. Apparent authority survives internal termination of actual authority unless the principal takes reasonable steps to notify third persons of the change. Third persons who reasonably rely on prior manifestations remain protected.
When is a landlord relieved of the duty to maintain residential premises because of third-person conduct?+
A landlord is relieved when the failure to meet health, safety, or housing codes results from the conduct of third persons rather than the landlord's own fault or a sudden non-manmade force. The lease may also alter the obligation if the parties validly agree otherwise.
Supporting sources
Can intent to contact one person support battery liability when contact occurs with a different third person?+
Yes. If an actor intends harmful or offensive contact with one person and the contact instead occurs with another, the actor is liable to the unintended victim as fully as if the actor had intended to affect that victim.
Supporting sources
What distinguishes a purchase-money mortgage given to a third-party lender from other mortgages?+
A purchase-money mortgage to a third-party lender exists when the loan proceeds are used to acquire title to real estate or construct improvements on it, provided the mortgage is given in the same transaction in which title is acquired.
Supporting sources
has posed a credible threat to the two major parties in Presidential elections.
Third
parties have been completely incapable of matching the major parties' ability to raise money and win…
third party
the legal right to make the [woman's] decision for her, or to prevent her from obtaining an abortion should she choose to have one performed." Hodgson v. Minnesota , 497 U. S., at 496…
who would be unlikely to risk contempt to secure immediate review, an appeal may be permitted. The unique circumstances of this case make the traditional contempt avenue particularly…
the law will look at their conduct and not to their intent or their words as between themselves but to their factual relation. Restatement (Second), Agency § 27 (1958). The normal pattern…
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