Third Party Beneficiaries Flashcards
What denotes a third party beneficiary?
If recognition of a right toperformancein the beneficiary is appropriate to effectuate the intention of the parties and either
a. theperformanceof thepromisewill satisfy an obligation of thepromiseeto pay money to the beneficiary; or
b. the circumstances indicate that thepromiseeintends to give the beneficiary the benefit of the promised performance.
What is right of a creditor beneficiary?
They are presumed to immediately rely on contract.
What happens when a donee beneficiary is identified?
Donee beneficiaries need to prove reliance upon contract.
What is the foreseeability analysis relating to third party beneficiaries?
Would __ want [pot. beneficiary] to be able to sue? Yes = 3° beneficiary.
What is an incidental third party beneficiary?
An unintended beneficiary.
Are incidental third party beneficiaries allowed to sue?
No.
