Asked by Paulina Martinez on May 03, 2024
Verified
Third-Party Woes.Trudy owed Sam $40 for a book she purchased from him.Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book.Sam is not initially aware of the agreement.Betty pays no one.Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally.Bob later refuses to do so saying that promises to give gifts are not enforceable.He then moves out of town.Trudy tells both Sam and Sally that she is broke,that Sam needs to get his $40 for the book from Betty,and that Sally is owed $40 from Bob for her birthday present.What type of third-party beneficiary is Sally?
A) Intended
B) Creditor
C) Both intended and creditor
D) Both intended and donee
E) Both creditor and donee
Donee Beneficiary
A third party who benefits from a contract made between two other parties, primarily in contexts like insurance or gifts.
Third-Party
An individual or group besides the two primarily involved in a contract or transaction.
- Comprehend the notion of third-party beneficiaries and distinguish between donee beneficiaries and creditor beneficiaries.
Verified Answer
NS
Nicolene SinclairMay 06, 2024
Final Answer :
D
Explanation :
An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract,and a donee beneficiary is a third party who benefits from a contract in which a promisor agrees to give a gift to the third party.
Learning Objectives
- Comprehend the notion of third-party beneficiaries and distinguish between donee beneficiaries and creditor beneficiaries.
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