Asked by Harun Abdullahi on May 09, 2024
Verified
Stella buys a car from Marble Sales for $10,000 on credit.Joel's daughter likes the car and so Joel buys the car from Stella.Joel also agrees to pay the balance due to Marble Sales,on behalf of Stella.Joel defaults.Marble Sales can bring a suit for breach of contract against:
A) Stella only.
B) Joel only.
C) Stella and Joel.
D) Joel and his daughter.
Breach Of Contract
An instance wherein one party fails to fulfill their obligations under a contract.
Credit
The provision of resources (such as money) by one party to another where the second party does not reimburse the first party immediately but promises to repay those resources at a future date.
- Distinguish and discern the distinctions between assignment and delegation within the framework of contracts.
- Gain insight into the notion of third-party beneficiaries and their lawful rights in the context of a contract.
Verified Answer
MT
Monique TatumMay 12, 2024
Final Answer :
C
Explanation :
If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a creditor beneficiary.The creditor beneficiary has rights against both the promisee (because of the original obligation)and the promisor.Marble Sales is the creditor beneficiary in this case,and as such,has rights against both Stella and Joel if Joel defaults.
Learning Objectives
- Distinguish and discern the distinctions between assignment and delegation within the framework of contracts.
- Gain insight into the notion of third-party beneficiaries and their lawful rights in the context of a contract.