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X,a Builder,contracts with the City of Y to Build a New

Question 48

Multiple Choice

X,a builder,contracts with the city of Y to build a new convention center.Z,a hotel owner,stands to benefit once the convention center is built,so Z is angry when X backs out of the contract.Z wants to sue X.Can Z sue X?


A) Z is a creditor beneficiary and can sue X.
B) Z is a donee beneficiary and can sue X.
C) Z can sue X because Z is a citizen of Y,with whom X contracted.
D) Z is an incidental beneficiary and cannot sue X.

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