Asked by Grant Burry on Jul 12, 2024
Verified
When the original parties to a contract agree that its performance should directly benefit a third party, that party can sue the promisor directly for breach.
Directly Benefit
To receive an immediate, positive impact from an action or decision, without intermediary steps.
Third Party
An entity or individual that is not directly involved in an agreement or transaction but may be affected by its outcome.
- Comprehend the differentiation between deliberate and unintentional beneficiaries who are third parties in an agreement.
- Acquire knowledge of the legal resolutions offered to parties when there is a violation of the contract by one of the parties or an interference with a third party beneficiary's entitlements.
Verified Answer
AA
Anjali AgrawalJul 13, 2024
Final Answer :
True
Explanation :
This is known as a third-party beneficiary contract, where the third party has legal rights to enforce the contract or claim damages for its breach.
Learning Objectives
- Comprehend the differentiation between deliberate and unintentional beneficiaries who are third parties in an agreement.
- Acquire knowledge of the legal resolutions offered to parties when there is a violation of the contract by one of the parties or an interference with a third party beneficiary's entitlements.