Asked by Claudiadavid Murillo on May 09, 2024
Verified
A(n) ________ beneficiary is one who unintentionally gains a benefit from a contract between other parties.
A) incidental
B) creditor
C) donee
D) vested
E) accidental
Incidental Beneficiary
A third party that benefits from a contract between two other parties, despite not being an intended beneficiary.
Contract
A legally binding agreement between two or more parties that outlines mutual obligations.
Creditor
An individual or institution that lends money or extends credit to another, with the expectation of being repaid.
- Identify the distinctions among creditor, donee, and incidental as types of third-party beneficiaries.
Verified Answer
HA
Hannah AdighijeMay 13, 2024
Final Answer :
A
Explanation :
Similar to intended beneficiaries,incidental beneficiaries are third-party beneficiaries to contracts.However,unlike the case with intended beneficiaries,the contracting parties do not intend to benefit incidental beneficiaries.An incidental beneficiary is one who unintentionally gains a benefit from a contract between other parties.
Learning Objectives
- Identify the distinctions among creditor, donee, and incidental as types of third-party beneficiaries.