Asked by shamimi samsudin on Jul 03, 2024

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Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

A) a donee beneficiary.
B) a transferee.
C) a delegatee.
D) an assignee.

Donee Beneficiary

A third party that benefits from a contract between two other parties, especially in cases where a party promises to make a gift or confer a benefit to someone who is not a party to the contract.

Stockbroker

A professional who buys and sells stocks and other securities on behalf of clients, typically for a commission or fee.

Valentine's Gift

A present given to express affection or love on Valentine's Day, typically symbolizing romantic interest or appreciation.

  • Differentiate among various categories of third-party beneficiaries.
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ZK
Zybrea KnightJul 05, 2024
Final Answer :
A
Explanation :
Warren becomes a donee beneficiary because he is receiving the shares as a gift from Mary, without giving consideration in return.