In a creditor beneficiary contract,if the new debtor fails to perform according to the new contract,the creditor beneficiary can ________.
A) enforce the original contract against the original debtor
B) sue the original promisor on the second contract
C) hold both the new and the original debtors liable for nonperformance
D) benefit from imposing the new contract on the original debtor

Question

Quizplus · Accepted Answer

In a creditor beneficiary contract, if the new debtor fails to perform according to the new contract, the creditor beneficiary retains the right to enforce the original contract against the original debtor. This is because the creditor beneficiary's rights are protected under the original agreement, and failure by the new debtor does not negate the original debtor's obligations.

In a Creditor Beneficiary Contract,if the New Debtor Fails to Perform