Third Party Agreements for Contract service Generally, contracts define relationships between two parties. For example, a bride creates a contract with a photographer and agrees to pay for the photos and the photographer’s services. But sometimes, especially in subcontracting situations, the original parties anticipate a relationship with third parties, and the need for third party agreements arises. A business that finds itself in the position of general contractor should have an attorney draft a contract for third-party contract services. Under Texas law, there is a presumption that parties contract solely for their own benefit, and not for the benefit of third parties. For this reason, a general contractor will need both a contract with the service purchaser and a separate contract with the subcontractor. Each contract should expressly state that no third-party beneficiaries are intended. If any dispute arises with the subcontractor, this will simplify litigation because the subcontractor cannot argue that the contract with the service purchaser creates a 3rd party agreement. Much litigation has its roots in defective contract drafting. If you are a business owner, you probably know by now that taking preventive measures can save you a bundle of money in the long term. Call an attorney today to draft your 3rd party contracts. An attorney’s help can ensure that your contracts are clear and that all parties—even third parties—understand their responsibilities. de la Riva & Associates San Antonio Attorneys have extensive experience with creating contracts to protect our clients from future problems. Call us today.

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