In the context of contracts, what does it mean for a third party to have "standing"?

When we discuss a third party having "standing" in the context of contracts, it specifically refers to their legal authority to enforce the contract. This concept is crucial because standing determines whether an outsider to the contract can bring a lawsuit or take legal action regarding the contract's terms and enforcement.

In many legal frameworks, for a third party to have standing, they typically need to demonstrate that they have a vested interest in the outcome of the contract. This often means that the contract either directly benefits or adversely affects them in some way. By having this legal standing, the third party is recognized by the law as having the right to seek enforcement of the contractual obligations or to claim damages in the event of a breach.

The other options, such as providing informal support, possessing a monetary interest, or simply having knowledge of the contract terms, do not confer legal authority or rights within the contractual framework. Merely being interested in or informed about a contract does not establish the legal standing necessary for enforcement actions. Thus, the correct answer emphasizes the legal aspect of standing in relation to contract enforcement, which is foundational for third parties seeking to engage with contractual rights.