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Explanation of Article 93

Explanation of Article 93

This article addresses the statement of "stipulation for the benefit of a third party," which is: one of the contracting parties stipulates to the other party to perform a specific act for the benefit of another person. The article states that the stipulation for the benefit of a third party occurs in two cases:

  • First: If the stipulation is "accompanied by a condition," which means that the stipulation is accompanied by a specific condition. If this condition is fulfilled, the right arises for the third party. For example, if a person stipulates to another to build a house for a third person, on the condition that the third person gets married, in this case, the right arises for the third person if they get married.

  • Second: If the stipulation is "not accompanied by a condition," which means that the stipulation is not accompanied by a specific condition. In this case, the right arises for the third party upon the conclusion of the contract.

It is worth noting that the stipulation for the benefit of a third party differs from contracting for the benefit of a third party in that the stipulation for the benefit of a third party relates to a condition in the contract, whereas contracting for the benefit of a third party relates to the entire contract.

This article is considered one of the most important articles related to the stipulation for the benefit of a third party, as it explains how to stipulate for the benefit of a third party and enumerates its methods.

Article 93

An agent may not, pursuant to the agency, conclude a contract with himself, whether for his own account or for the account of a third party, unless he is authorized to do so; the principal may ratify such contract.