A creditor beneficiary benefits from a contract in which one party promises another to pay a debt that the promisee owes to a third party.

Question

Quizplus · Accepted Answer

A creditor beneficiary is a third party who benefits from a contract in which one party promises another to pay a debt that the promisee owes to the creditor beneficiary. This allows the creditor beneficiary to receive payment directly from the promisor, rather than relying on the promisee to pay the debt.

A Creditor Beneficiary Benefits from a Contract in Which One