A creditor beneficiary refers to an original creditor who becomes a beneficiary under the debtor's new contract with another party.

Question

Quizplus · Accepted Answer

A creditor beneficiary is a valid legal term referring to a situation where a creditor of an original contract becomes a beneficiary of a new contract between the debtor and a third party. In such cases, the creditor is entitled to receive payments or other benefits according to the terms of the new contract.

A Creditor Beneficiary Refers to an Original Creditor Who Becomes