WorldRest Hotels has contracted with QuickBuild Construction to build a 650-bed hotel in Downtown Dallas.Marty has entered into a lease agreement for retail space in an adjacent building to open a gift shop catering to the hotel guests.QuickBuild was aware of Marty's lease agreement.QuickBuild breached its contract with WorldRest by not completing the hotel until seven months after the contractual due date.Because the hotel was late opening and there were seven months when the hotel had no guests,Marty lost considerable profits in the retail shop.Marty has sued QuickBuild to recover these lost profits.Which of the following is true?
A) Marty is a donee beneficiary of QuickBuild's contract to build the hotel.
B) Marty cannot recover because Marty is an incidental beneficiary of the hotel construction contract.
C) Because QuickBuild is now in debt to Marty for the lost profits, Marty is a creditor beneficiary of the hotel construction contract.
D) Marty can recover in the situation on the basis of an assignment of rights.
E) The court would likely order QuickBuild to delegate its duties on future contracts so that they are finished on time.

Question

Quizplus · Accepted Answer

Marty is considered an incidental beneficiary of the contract between WorldRest Hotels and QuickBuild Construction. This means that the contract was not intended to benefit Marty directly, but only as a result of the construction of the hotel. Therefore, Marty cannot recover lost profits from QuickBuild for breach of contract.

WorldRest Hotels Has Contracted with QuickBuild Construction to Build a 650-Bed