Asked by Kathryn Houle on Jun 11, 2024
Verified
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.
Verified Answer
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.
Learning Objectives
- Clarify the differences among donee beneficiaries, creditor beneficiaries, and incidental beneficiaries in contract law.