A donee beneficiary contract exists when the purpose of the promisee in obtaining a promise from the promisor is to make a gift to a third person.

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A donee beneficiary contract is a type of contract where the promisor makes a promise to the promisee, and the intent of the promisee is to make a gift to a third person, known as the beneficiary. In this contract, the beneficiary has a right to enforce the contract against the promisor, even though the beneficiary is not a party to the contract.

A Donee Beneficiary Contract Exists When the Purpose of the Promisee