A donee beneficiary
A)is not entitled to enforce a contract against either party.
B)usually does not give consideration in return for the gift.
C)will generally become a creditor beneficiary after his or her rights vest.
D)is an incidental beneficiary.

Question

Quizplus · Accepted Answer

A donee beneficiary is someone who is intended to receive a gift or benefit under a contract, but does not provide consideration in return. They can enforce the contract against the promisor (one who makes the promise to give the gift), but not against the promisee (one who receives the promise of the gift). Therefore, A is incorrect. A donee beneficiary does not become a creditor beneficiary, so C is also incorrect. An incidental beneficiary is someone who is unintentionally benefited by the contract, so D is also incorrect.

A Donee Beneficiary