Susan wanted to give a diamond pendant to Lucy, her daughter. Susan entered into a contract with Andrew, a dealer who specializes in diamond jewelry. Susan had promised to pay him if he delivered the pendant to Lucy. Andrew withdrew from the contract and Lucy wanted to sue him. Which of the following statements is true in this scenario?

Question

Quizplus · Accepted Answer

In this scenario, Lucy can sue Andrew as she is a donee beneficiary of the contract. A third person is a donee beneficiary if the promisee's primary purpose in contracting was to make a gift of the contracted performance to the third party. Either the promisee or the donee beneficiary can sue the promisor for not performing the promise. The beneficiary can recover the value of the promised performance, while the promisee can recover damages resulting from nonperformance (usually only nominal damages).

Susan Wanted to Give a Diamond Pendant to Lucy, Her