Matrix,Inc.contracts with Smalltown Economic Development Corp.to build a factory in Smalltown that will employ 1,000 workers from Smalltown.Matrix later breaches this contract,and Smalltown citizens who were expecting to be employed sue Matrix for breach of its contract.Smalltown citizens' best argument for damages involves the legal doctrine of:

A) quasi contracts.
B) privity of contracts.
C) intended beneficiaries.
D) implied-in-fact contracts.

The Smalltown citizens are intended beneficiaries of the contract between Matrix and Smalltown Economic Development Corp. As such, they have the right to sue for damages resulting from the breach of the contract. Quasi contracts apply in situations where there is no actual contract but it is necessary for fairness to imply one. Privity of contracts applies to the parties who are directly involved in the contract. Implied-in-fact contracts arise from the conduct of the parties and may be inferred from their actions or from the circumstances surrounding their relationship.