Legalese 2009 (Week 40)

Lexicon

stipulation pour autrui – a stipulation in a contract clearly and deliberately conferring a benefit upon a third person who has the right to demand its fulfillment, provided he communicated his acceptable of the benefit to the obligor before its revocation by the obligee or the original parties (see Comments and Cases on Obligations and Contracts, p. 502 [2003]).

Lexplore

If a contract should contain a stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contacting parties must have clearly and deliberately conferred a favor upon a third person. (Civil Code, art. 1311)

Lexpound

Stipulations in favor of a third person may be divided into two classes, namely:

(1)     Those where the stipulation is intended for the sole benefit of such person;

(2)     Those where an obligation is due from the promisee to the third person which the former seeks to discharge by means of such stipulation, such as where a transfer of property is coupled with the purchaser’s promise to pay a debt owing from the seller to a third person. (see Comments and Cases on Obligations and Contracts, p. 502 [2003]).

Lexcogitate

B, a bank and a credit card issuer, and S, a business establishment, entered into an agreement whereby S shall honor validly issued B’s credit cards presented by their corresponding holders in the purchase of goods and services supplied by C. Is this a stipulation pour autrui? (see Comments and Cases on Obligations and Contracts, p. 503 [2003]).

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