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 ________.

Question

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This is an example of a donee-beneficiary contract, where Randall is the policyholder (promisor), the insurance company is the promisee, and his daughter is the donee beneficiary who will receive the benefit ($150,000) upon Randall's death.

Randall Agrees to Pay a Yearly Premium to an Insurance