What is the defining characteristic of a donee 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 a donee third-party beneficiary is that the benefit received by the beneficiary is a gift. This means that the party who is contracting has no interest in the benefit conferred upon the third party, and the third party is expected to receive the benefit as a gift.

What Is the Defining Characteristic of a Donee Third-Party Beneficiary