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) 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.
C) Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers.
D) 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.

Question

Quizplus · Accepted Answer

In option B, the doctor is an incidental beneficiary of the insurance policy agreement between the insurer and the insured. The policy's primary intent is to benefit the insured by reimbursing medical expenses, not to directly benefit the doctor or ensure payment to them. Therefore, the doctor, as an incidental beneficiary, would typically be unable to enforce the agreement directly.

In Which of the Following Situations Is There a Third