Veronica entered into a contract with a local car dealer to have a new convertible sports car delivered to her daughter, Jasmine, as a college graduation present. In this contract, Jasmine is:
A) an incidental beneficiary.
B) a donee beneficiary.
C) a creditor beneficiary.
D) an assignor.

Question

Quizplus · Accepted Answer

Jasmine is a donee beneficiary because she is receiving the benefit of the contract (a new convertible sports car) as a gift from Veronica, without having given consideration or having any obligation under the contract.

Veronica Entered into a Contract with a Local Car Dealer