Asked by Deija Williams on May 09, 2024
Verified
A third party is categorized as a donee beneficiary when:
A) the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to the third party.
B) the benefit derived by the third party was merely an unintended by-product of a contract that was created for the benefit of those who were parties to it.
C) he/she is unable to establish that the contract was made with the intent to benefit him/her.
D) the promisor's performance is intended to satisfy a legal duty that the promisee owes to the third party.
Donee Beneficiary
A third party who benefits from a contract made between two other parties, specifically where the intent is to gift a benefit or rights under the contract to the third party.
Promisee
The person to whom a promise is made or a commitment is given.
Promisor
An individual or entity that makes a promise or agreement to perform a specified act or service in a contract.
- Understand the concept of third-party beneficiaries and their rights under a contract.
Verified Answer
LW
Leroy WatsonMay 12, 2024
Final Answer :
A
Explanation :
Intended beneficiaries are often classified as either creditor or donee beneficiaries.If the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to a third party,that third party is classified as an intended donee beneficiary.
Learning Objectives
- Understand the concept of third-party beneficiaries and their rights under a contract.
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