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Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921 Exercise 1
Cornerstone Jeffrey Wilson, L.L.C. (Wilson) contracted with B R Construction Management Inc. (B R) for B R to demolish a Portsmouth Redevelopment and Housing Authority (PRHA) facility. The contract required B R to provide performance and payment bonds. The contract also provided: "All rights under this Contract Agreement shall be for the benefit of [WILSON] and its successors and assigns, including PRHA" and that nothing in the contract shall be construed "to give any third party any claim or right of action against PRHA or HUD." B R subcontracted some work to Beamon Enterprises Inc. (Beamon) who subcontracted to Environmental Staffing Acquisition Corp. (En Staff). Beamon did not pay En-Staff, who discovered B R's bonding company was not licensed in the state and was out of business. En-Staff sued B R for breach of contract, claiming it was a third-party beneficiary of the contract between Wilson and B R. Should En-Staff succeed? [ Environmental Staffing Acquisition Corp. v. B R Const. Management Inc. , 725 S.E.2d 550 (Va.)]
Explanation
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A third party may sue to enforce the ter...
Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
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