Ch 19 Notes LPP.docx - Third-party beneficiaries are entitled to enforce a contract made in their behalf because the original parties provide that the

Ch 19 Notes LPP.docx - Third-party beneficiaries are...

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Third-party beneficiaries are entitled to enforce a contract made in their behalf because the original parties provide that the benefits shall go to the beneficiary, even if the beneficial third- party is unaware of the contract when signed. Donee-Beneficiary – a third party who receives a gift when a promise secures a promise from a promisor for the purpose of making a gift to a third party Ex. life insurance policy with the beneficiary as someone other than the insured Creditor-beneficiary relationship – a third party who receives the benefits of a contract made between two contracting parties for the purpose of paying one original party’s debt to the third party Legal Requirements for Enforcement A third-party beneficiary may enforce performance of a contractual promise even though the third-party beneficiary was not a party that created the contract The third-party beneficiary must be an intended beneficiary, not an incidental one o
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