Third Parties Beneficiaries Flashcards
What is an incidental beneficiary?
Somebody who incidentally benefits from a contract
What are the two types of 3rd party beneficiaries?
Intended and Incidental
What is the most important thing to remember about an incidental beneficiary?
An incidental beneficiary NEVER has rights; no right to seek enforcement.
What is an intended beneficiary?
Someone intended to be a beneficary of a contract.
Do intended beneficiaries have rights?
They MAY (named in the fact pattern)
How do you know when an intended beneficiaries rights have vested?
Rights vest when parties tell 3rd party and accepts or 3rd parties learns of it and relies.
If an intended beneficiaries rights have vested what kind of rights does he have?
If rights have vested, 3rd party has same rights as the parties to the K.
What is a creditor beneficiary?
Promisee seeks a performance from promisor to satisfy an obligation owed to a 3rd party.
What is a donee beneficiary?
Promisee seeks performance from promisor in order to make a gift of that performance to a 3rd party.
