Also known as:outside parties · third party · outsider
Written by attorneys · grounded in primary & secondary sources — see below
A person or entity that is not a direct participant in a transaction, agreement, or legal proceeding.
Sources & Authorities
How it applies
Common Examples
6
Defamatory Statement to Colleague
Odilia Okamura wrote an email accusing her coworker of theft and sent it to a colleague at the same firm. The colleague then shared the email with others outside the immediate employment dispute. The publication to the colleague satisfies the element of communication to an outside party, allowing the defamation claim to proceed against Odilia.
Third-Party Lender Mortgage
Opal Okoro purchased a warehouse from a seller and obtained a loan from Olympia Steel's financing arm to pay the purchase price. The lender recorded a mortgage on the same day title passed. The mortgage qualifies as a purchase money mortgage because the proceeds came from an outside party lender used to acquire title in the same transaction.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Restatements
Will Attempting Joint Tenancy Devise
Onyx O'Reilly and her spouse held their home as tenants by the entirety. While divorce proceedings were pending, Onyx executed a will leaving her interest to her brother. Upon Onyx's death the surviving spouse took full title by operation of law, and the attempted devise to the outside party brother had no effect.
Proxy Marriage Ceremony
Orlando Okafor was deployed overseas and could not attend his wedding. He executed a written authorization allowing his friend to serve as proxy at the ceremony. The state recognized the marriage because the absent party properly designated an outside party to participate in the solemnization.
Prior Recorded Easement on Leased Land
Orchard Farms leased a parcel to a tenant for farming. An electric utility held a recorded easement across the land that predated the lease and could not be terminated at the landlord's will. The easement constitutes a paramount interest held by an outside party that binds the tenant.
Student Group Funding Dispute
Odin Obeng led a student organization at a public university that sought reimbursement for printing costs from a student activities fund. University officials denied the request because the group published a religious viewpoint. The denial treated the organization as an outside party whose speech could not receive equal funding under the program.
Rosenberger v. Rector and Visitors of the University of Virginia515 U.S. 819 (1995)
Common questions
Frequently Asked
5
When does communication to an outside party create defamation liability?+
Liability requires an unprivileged publication of a false and defamatory statement to someone other than the person defamed. The publication element is satisfied once the statement reaches any third person who is not the original speaker or the subject.
How does a purchase money mortgage given to an outside party lender receive priority?+
A mortgage qualifies as a purchase money mortgage when an outside party lender supplies proceeds used to acquire title or construct improvements in the same transaction. That mortgage then takes priority over earlier claims arising against the purchaser before title passed.
Can a will pass property held in joint tenancy to an outside party?+
No. Property held in joint tenancy or tenancy by the entirety passes by operation of law to the surviving co-tenant. A will attempting to devise the interest to an outside party has no effect while the tenancy remains intact.
What role does an outside party play in a proxy marriage?+
The absent spouse authorizes an outside party in writing to stand in at the ceremony. The proxy participates in the solemnization on behalf of the absent party, allowing the marriage to be completed under state law that permits proxy marriages.
When is a third-party interest paramount to a tenant's leasehold?+
A legal interest held by an outside party at the time the lease is made is paramount to both the landlord and the tenant unless the recording act or the third party itself provides otherwise. Interests created after the lease are generally subordinate to the tenant's interest.
438 U.S. 104, 98 S.Ct. 2646, 57 L.Ed.2d 631 (1978)Property
…Appellants own the Grand Central Terminal, which has been designated a landmark. They entered into a lease agreement with a third party to construct a multistory office building above the terminal. The Commission rejected the proposed construction, finding that it would destroy the terminal's historic and aesthetic…