Courts often look for evidence of the original parties’ intent, examining factors such as the circumstances surrounding the contract, any direct references to the third party, and the conduct of the contractual parties. They consider if conferring benefit was a motivating factor for entering into the agreement.
For example: If parents sign a tuition payment contract with a private school and the agreement ambiguously references educational quality standards, their child may be seen as an intended beneficiary entitled to enforce these standards because providing education is clearly central to the purpose of the contract.