What is the defining characteristic of an incidental third-party beneficiary?
A) The benefit received by the donee beneficiary is a gift.
B) The donee beneficiary has also been delegated a duty.
C) The donee beneficiary was not intended to receive a benefit.
D) The donee beneficiary has preexisting obligations related to the contract.
E) The donee beneficiary status arose out of the assumption of a loan agreement.

Question

Quizplus · Accepted Answer

The defining characteristic of an incidental third-party beneficiary is that they were not intended to receive a benefit from the contract. They are not named in the contract and their benefit is merely incidental to the performance of the contract. Therefore, choice C is the correct answer. Choices A, B, D, and E do not accurately describe the defining characteristic of an incidental third-party beneficiary.

What Is the Defining Characteristic of an Incidental Third-Party Beneficiary