had its underpinnings in the French Civil Code, the term "stipulation pour autrui" was not employed in the Louisiana Civil Code. Professor Smith, however, called the term a "well established part of our legal language." Smith, 11 Tul. L.Rev. at 23. The term remains a part of our legal language today.
There has been a codal provision in Louisiana recognizing a stipulation for a third party since 1808. See Article 21 of the Louisiana Civil Code of 1808; see also Art. 1890, La. C.C. Comp. Ed., in 16 West's LSA-C.C. pp. 1076-1077 (1972).
A true third party beneficiary is never a party to the contract in question; he is never a promisee. Smith, 11 Tul. L.Rev. at 33. The promisee is the stipulator and the promise runs to him andentered into a contract with the city to furnish water and maintain hydrants in good repair. The plaintiff sued the water company for damages sustained as a result of the loss of its building due to fire because of an alleged breach of the water company's obligation to maintain the hydrants. The supreme court held that the plaintiff had no right of action. The contract was between the city and the water company. The plaintiff, as an inhabitant of the city, was an incidental beneficiary[8] and as such had no right of action. See discussion in Smith, 11 Tul. L.Rev. at 50.
In this matter, the court of appeal found administration of anesthesia service to the hospital's patients was the object of the contract and concluded that SMAA, as