To make a third party a donee beneficiary,the creation of a gift (intended for the third party)of the contracted performance must be the promisee's primary purpose in contracting.

Question

Quizplus · Accepted Answer

This statement is true based on the principle of donee beneficiary in contract law. The primary intent of the promising party must be to create a gift for the third party, and this must be clearly stated or implied in the terms of the contract. Without this intent, the third party cannot be considered a donee beneficiary of the contract.

To Make a Third Party a Donee Beneficiary,the Creation of a Gift