beneficiary contracts involve two parties to a contract, either by words, writing, or actions, intending to bring benefits to a third party by virtue of an enforceable contract.

Question

Quizplus · Accepted Answer

Beneficiary contracts are considered intended when the original parties to the contract intend to benefit a third party. This means that they have a clear intention to create legal rights for the third party and have considered the impact of the contract on that person. Incidental beneficiaries, on the other hand, are not intended beneficiaries and do not have enforceable rights under the contract. Donee and creditor refer to specific types of beneficiaries, but do not address the issue of intention in creating the contract.

Beneficiary Contracts Involve Two Parties to a Contract, Either by Words