Tyron purchased a vacant lot and entered into a contract with BZ Inc.to construct a shopping center on the site.Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center.Tyron was unable to raise the necessary capital and was unable to perform the contract with BZ,Inc.Douglas sued Tyron for breach of contract as a third party beneficiary.Douglas will probably
A)win as a third party creditor beneficiary.
B)win as a third party donee beneficiary.
C)lose as a third party incidental beneficiary.
D)lose as a third party creditor beneficiary.

Question

Quizplus · Accepted Answer

Douglas is an incidental beneficiary, which means that he would only benefit from the contract if performance by Tyron was completed. As Tyron was unable to complete the contract with BZ, Inc., Douglas cannot sue for breach of contract.

Tyron Purchased a Vacant Lot and Entered into a Contract