A mortgage broker who sells mortgage contracts to mortgage companies has created a third party beneficiary contract.

Question

Quizplus · Accepted Answer

A mortgage broker who sells mortgage contracts to mortgage companies is not creating a third-party beneficiary contract; instead, they are acting as an intermediary between the borrower and the lender. A third-party beneficiary contract is one in which the parties to the contract intend to benefit a third party directly through their agreement.

A Mortgage Broker Who Sells Mortgage Contracts to Mortgage Companies