Randall agrees to pay a yearly premium to an insurance company that promises to give his daughter $150,000 upon his death. This is an example of a contract.

Name: Randall agrees to pay a yearly premium to an insurance company that promises to give his daughter $150,000 upon his death. This is an example of a contract.
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This is a donee beneficiary contract because the insurance company promises to pay a benefit to a third party (Randall's daughter) upon Randall's death.

Randall Agrees to Pay a Yearly Premium to an Insurance