Definition

A stipulation pour autrui is a provision in a contract conferring a clear and deliberate favor upon a third person who is not a party to the contract. The contracting parties must have clearly and deliberately conferred the favor upon the third person. This stipulation is binding on the parties only after the third person communicates acceptance to the obligor.

Requisites of Stipulation Pour Autrui

For a stipulation to be considered pour autrui, the following requisites must be present:

• There must be a stipulation in favor of a third person.
• The stipulation must be a part, not the whole, of the contract.
• The contracting parties must have clearly and deliberately conferred a favor upon the third person, not merely an incidental benefit or interest. This requires examining the intention of the parties as disclosed by the contract.
• The third person must have communicated their acceptance of the favor to the obligor before its revocation.
• Neither of the contracting parties bears the legal representation or authorization of the third party.