Explanation of Article 91
This article addresses the explanation of "contracting for the benefit of a third party," which is when a person contracts in their own name, but the contract is for the benefit of another person who is not one of the contracting parties. The article stipulates that contracting for the benefit of a third party occurs in two cases:
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First: "Life insurance," which is when a person contracts with an insurance company, commits to paying insurance premiums, and in return, the company commits to paying a certain amount to another person after the death of the contractor. In this case, the contract is for the benefit of a third party.
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Second: "Stipulation for the benefit of a third party," which is when one of the contracting parties stipulates to the other party to perform a certain act for the benefit of another person. In this case, the contract is for the benefit of a third party.
It is worth noting that contracting for the benefit of a third party differs from contracting on behalf of another in that contracting on behalf of another involves contracting in the name of another person, whereas contracting for the benefit of a third party involves contracting in the name of the contractor, but the contract is for the benefit of another person.
This article is considered one of the most important articles related to contracting for the benefit of a third party, as it clarifies how to contract for the benefit of a third party and enumerates its methods.
Related To
Article 91
If an agent fails to disclose his capacity as an agent/such to the other contracting party at the time of concluding the contract, the effects of the contract shall not accrue to the principal, whether as a creditor or debtor, unless the existence of such agency should have been known by the other party, or if said party is indifferent to whether he concludes the contract with the principal or the agent.