In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?
A) Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business.
B) Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers.
C) A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.
D) A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

Question

Quizplus · Accepted Answer

In option D, the doctor is an incidental beneficiary of the insurance policy agreement between the insurer and the insured. The doctor does not have a direct contractual relationship with the insurance company and cannot enforce the agreement.

In Which of the Following Situations Is There a Third