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California
Law Dictionary
Contracts-Third Party Beneficiary Standing

(
Schauer v. Mandarin Gems of Cal., Inc. )

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Expressly defined
(Schauer v. Mandarin Gems of Cal., Inc. )

 “‘“Expressly,” [as used in the statute and case law,] means “in an express manner; in direct or unmistakable terms; explicitly; definitely; directly.”’  [Citations.] ‘[A]n intent to make the obligation inure to the benefit of the third party must have been clearly manifested by the contracting parties.’”  (Sofias v. Bank of America (1985) 172 Cal.App.3d 583, 587.)  Although this means persons only incidentally or remotely benefited by the contract are not entitled to enforce it, it does not mean both of the contracting parties must intend to benefit the third party:  Rather, it means the promisor — in this case, defendant jeweler — “must have understood that the promisee [Erstad] had such intent.  [Citations.]  No specific manifestation by the promisor of an intent to benefit the third person is required.”  (Lucas v. Hamm (1961) 56 Cal.2d 583, 591; see also, Johnson v. Superior Court (2000) 80 Cal.App.4th 1050, 1064-1065; Don Rose Oil Co., Inc. v. Lindsley (1984) 160 Cal.App.3d 752, 757, and Zigas v. Superior Court (1981) 120 Cal.App.3d 827, 837.)

 

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