Denise contracts with Long Life Insurance Co. ,agreeing to pay premiums in return for which the company agrees to pay $500,000 to Denise's husband Barn when Denise dies.Barn is a(n):
A)creditor beneficiary.
B)donee beneficiary.
C)incidental beneficiary.
D)delegatee.

Question

Quizplus · Accepted Answer

If the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to a third party,that third party is classified as a donee beneficiary.Here,Barn is the donee beneficiary because the contract is made with the objective to give him the insurance money.

Denise Contracts with Long Life Insurance Co