Final answer:
The rights of third-party intended beneficiaries vest when the beneficiary manifests assent, sues to enforce the promise, or relies on the promise to their detriment. This concept relates to legal entitlements in acquisition or transfer of holdings.
Step-by-step explanation:
When discussing when the rights of third-party intended beneficiaries vest, it is important to understand the concept of vesting in the context of contracts. Vesting occurs when a third party beneficiary's rights become secure against the promisor and promisee, to the point where they can enforce the contract. These rights typically vest when the beneficiary:
- Manifests assent to the promise in a manner invited or requested by the parties,
- Brings suit to enforce the promise, or
- Materially changes position in justifiable reliance on the promise.
To be entitled to a holding, one must acquire it according to the Principle of Justice in acquisition—by rightful claim or original ownership—or the Principle of Justice in transfer—through a legitimate transaction from one who is entitled. An example relating to such principles can be found in historical legal codes, such as those that deal with inheritance and property transfers upon death.