In determining whether a party is an incidental or intended beneficiary, one factor courts consider is whether the contract directly states that the third party is the benefiting party.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, despite not being a party to that contract and having no rights to enforce the terms of the contract.

Intended Beneficiary

A person or entity that is not a party to a contract but stands to benefit from the contract's performance.