A third party is usually a person who, although unrelated to an agreement, is affected by the conditions. If two parties agree to an agreement that includes another person responsible for the payment, that person is considered a third party. The third party has no legal right to the agreement, unless it is responsible for maintaining the contract. For third-party payment agreements to work, the third party must be prepared to accept the agreement. The third party must sign the agreement and assume responsibility for the payments to the contract manufacturer. A third-party payment contract is an agreement between two persons that includes a third party responsible for payments that are defined as contractual terms. Any agreement reached when one party has to pay another party could contain a third party. This third party is sometimes considered a co-signer when it comes to a loan. The co-signer has no interest in the agreement, but must pay the contract in the event of a late payment from the borrower. These are also used in other cases, such as school bills.
A student can sign an agreement to take classes, but the parent signs a third-party payment contract that states that the parent agrees to pay all bills. Jennifer VanBaren began her professional online writing career in 2010. She taught accounting, mathematics and economics courses at the university level for five years. His writing priorities include publishing articles on music, economics, horticulture and domestic organization. She earned a bachelor`s degree in accounting and finance from St. Joseph`s College in Rensselaer, Ind.