third party
Definition
A third party is anyone who is not directly involved in a contract or agreement between two people or businesses. If you sign a deal with a supplier, you two are the main parties, and everyone else in the world is a third party. Third parties generally have no rights or responsibilities under your agreement unless the contract specifically gives them some.
Example
You hire a contractor to renovate your shop, and that contractor hires a plumber to help without telling you. That plumber is a third party to your contract with the contractor.
Watch Out
If something goes wrong and a third party gets hurt or suffers a loss because of your business activities, they can sometimes still sue you even though they never signed anything with you.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.