00:00The relative effect of a contract means that a legal agreement only binds and commits the signatory parties, preventing
00:05Thus, the contract creates obligations or assigns direct rights to external third parties, article 1199 of the
00:11Civil Code.
00:12However, although third parties are not bound by these obligations, the contract remains enforceable against them as
00:17As a legal fact, they must respect its existence and can sometimes invoke it if its execution causes them harm.
00:22harm, while the law provides for rare exceptions such as stipulations for the benefit of a third party, for example, life insurance, or
00:28a contract directly benefits a third party.
