Definition of a third-party agreement

Written by angelina jennings
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Definition of a third-party agreement
Some contracts must be in writing and signed by all parties to be legally binding. (signing a contract image by William Berry from

Third-party agreements are contracts that the owner of a property uses to help shield him from liability when another individual is using the property.

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A third-party agreement is an agreement between the owner of a property and the person she is allowing to use her property. It often lays out the terms for using a property and restricts the owner's liability. The third party often acts as a licenser to an independent contractor, the licensee, who uses the third party's property for an event or to offer services.

Third Party

A third party is someone who is not a party to the agreement, but who may be affected.


Impleader is a civil suit by a defendant to bring a third party into a lawsuit because that party is liable for at least some of the plaintiff's damages. If an independent contractor/licensee is negligent resulting in the owner/licenser being sued, often the licenser will use impleader to bring the licensee into the suit.

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