A creditor beneficiary:
A) has rights against both the promisee and the promisor.
B) is the promisor in a performance that satisfies a legal duty.
C) acquires no rights under a contract and therefore cannot sue for nonperformance.
D) is the promisee who owes a legal duty to a third party.

Question

Quizplus · Accepted Answer

If a promisor's performance will satisfy a legal duty that the promisee owes a third party, the third party is a creditor beneficiary. The creditor beneficiary has rights against both the promisee and the promisor.

A Creditor Beneficiary