Third Parties Beneficiaries

Question 1

What is an incidental beneficiary?

Answer 1

Somebody who incidentally benefits from a contract

Question 2

What are the two types of 3rd party beneficiaries?

Answer 2

Intended and Incidental

Question 3

What is the most important thing to remember about an incidental beneficiary?

Answer 3

An incidental beneficiary NEVER has rights; no right to seek enforcement.

Question 4

What is an intended beneficiary?

Answer 4

Someone intended to be a beneficary of a contract.

Question 5

Do intended beneficiaries have rights?

Answer 5

They MAY (named in the fact pattern)

Question 6

How do you know when an intended beneficiaries rights have vested?

Answer 6

Rights vest when parties tell 3rd party and accepts or 3rd parties learns of it and relies.

Question 7

If an intended beneficiaries rights have vested what kind of rights does he have?

Answer 7

If rights have vested, 3rd party has same rights as the parties to the K.

Question 8

What is a creditor beneficiary?

Answer 8

Promisee seeks a performance from promisor to satisfy an obligation owed to a 3rd party.

Question 9

What is a donee beneficiary?

Answer 9

Promisee seeks performance from promisor in order to make a gift of that performance to a 3rd party.