Halle and Rose enter into a contract in which Rose agrees to sell her property to Halle so Halle can build a hotel. Maria owns the restaurant next door and will benefit from the opening of the hotel because it will bring in many new customers. Rose subsequently breaches the contract so Halle cannot buy the property and build the hotel. Can Maria sue Rose for breach of contract?
A) Yes, because Maria was an intended beneficiary to the contract.
B) Yes, because Maria was an intentional beneficiary to the contract.
C) Only if Halle does not sue.
D) Only if Halle also sues.
E) No, because Maria was an incidental beneficiary to the contract.

Question

Quizplus · Accepted Answer

Maria was an incidental beneficiary to the contract between Halle and Rose, meaning she would indirectly benefit from its execution but was not a party to the contract nor a direct beneficiary. Incidental beneficiaries typically do not have the legal standing to sue for breach of contract.

Halle and Rose Enter into a Contract in Which Rose