A creditor beneficiary contract usually arises when the original creditor assigns his or her rights to receive a performance to an intended third party.

Question

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A creditor beneficiary contract arises when the promisee enters into a contract with the promisor for the purpose of providing a benefit to a third party, who is the creditor beneficiary, not through assignment of rights by the original creditor.

A Creditor Beneficiary Contract Usually Arises When the Original Creditor