Asked by Kathryn Houle on Jun 11, 2024

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There are two situations in which a third party gains rights to a contract: donee beneficiary and incidental beneficiary.

Donee Beneficiary

A third party who benefits from a contract in which a promisor agrees to give a gift to the third party.

Incidental Beneficiary

A third party who may benefit from a contract between two other parties, even though the benefit was not the purpose of the contract.

  • Clarify the differences among donee beneficiaries, creditor beneficiaries, and incidental beneficiaries in contract law.
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BM
brenda mancillaJun 14, 2024
Final Answer :
False
Explanation :
The correct situations are donee beneficiary and creditor beneficiary, not incidental beneficiary. Incidental beneficiaries do not gain rights to a contract.