When the promisee is not indebted to the third person but intends for him or her to have the benefit of the promisor's performance, the third person is a creditor beneficiary.

Question

Quizplus · Accepted Answer

A third person who benefits from a contract where the promisee intends for them to benefit, but is not owed a debt, is known as a donee beneficiary, not a creditor beneficiary.

When the Promisee Is Not Indebted to the Third Person