Asked by Shania Gaston on May 02, 2024
Verified
Claudia contracts with Friendly Paving Co.to install a new driveway.To pay for this work,Claudia transfers to Friendly Paving Co.her right to receive payment from Clifford for a loan she made him.Friendly Paving Co.is now a(n) :
A) creditor beneficiary.
B) donee beneficiary.
C) executor.
D) fiduciary.
Creditor Beneficiary
A third party who benefits from a contract made between two other parties, especially in scenarios where one party promises to pay a debt owed to the third party.
Assigns
Individuals or entities to which rights or property are legally transferred or passed on.
- Determine the legal consequences of delegating and assigning contracts for the involved entities.
- Gain an understanding of the legal stipulations and ramifications involved in the transfer of rights or duties pursuant to a contract.
Verified Answer
CA
Clement AntwiMay 07, 2024
Final Answer :
A
Explanation :
Claudia has transferred her right to receive payment from Clifford to Friendly Paving Co. This means that Friendly Paving Co. now has the right to collect payment as a creditor beneficiary.
Learning Objectives
- Determine the legal consequences of delegating and assigning contracts for the involved entities.
- Gain an understanding of the legal stipulations and ramifications involved in the transfer of rights or duties pursuant to a contract.
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