Someone who"s considered a non party in a contract but nevertheless receives a gain in the conclusion of the contract. A donee beneficiary may also function as third party that gains from present or a contribution. For instance, Sam (donor) guarantees to gift a gold watch to Phil (donee). To get this watch Sam will purchase it from Mike (third party). In this situation, Mike is the exchange of Phil and the donee beneficiary in Sam. Mike wouldn"t sell the watch if Sam went back on his guarantee. Mike advantages but isn"t really portion of the contract. Also called a third party beneficiary.