Third Party Beneficiary Contract to Procure a Payment Bond
The general rule with respect to third-party beneficiary actions in Illinois is well settled. If a contract is entered into for a direct benefit of a third person, not a party to the contract, such third person may sue for breach thereof.
The test is whether the benefit to the third person is direct or incidental. As long as the benefit is direct, that individual may sue on the contract. (Western Waterproofing Co. v. Springfield Housing Authority (1987), 669 F. Supp. 901).
A contract to procure a payment bond is specifically written to protect the subcontractor and therefore the benefit is obviously direct.