When do the rights of a third-party beneficiary vest?

The correct answer is that the rights of a third-party beneficiary vest in a manner invited or requested by the parties. In contract law, a third-party beneficiary is someone who stands to benefit from a contract made between two other parties. The vesting of these rights typically occurs at a specific point, which is influenced by the intentions of the contracting parties.

The rights can vest in various ways, such as when the third party learns of the contract and acts on it (which could include requesting benefits under the contract), or in accordance with provisions that might be included in the contract itself. This concept allows flexibility and reflects the intention of the parties regarding the rights of the third-party beneficiary.

For instance, if the parties include a clause in the contract that specifies the beneficiary's rights will be effective once the beneficiary is notified of the contract, those rights would then vest at that time.

The other choices lack the necessary nuance. Rights do not vest immediately upon contract formation because a third-party beneficiary would need to receive some notice or action affirming their benefit. Similarly, rights do not require the third party to witness the contract signing, nor do they vest simply by the third party learning of the contract and outright agreeing, as their rights are subject to the will