a) False. Long is not an intended beneficiary. An intended beneficiary is a third party of the contract designed to benefit from it. The contract is very broad which states to train all high school drop outs of a city.
b) False. See a above. Intended beneficiary should be specific, e.g. if the contract was for Graham to train people including L , then L would be an intended beneficiary.
c) True. It is incidental that L dropped out of High school. For example, L may have remained in school or continued transfer to another school in another city.
d) False. L is not suing as an assignee of the city but as a drop out who was suppose to benefit from it.
Refer to the case Caswell v Zoya International (654 NE2d 552).
1) Plaintiff, a customer, fell and was injured while inside a store owned by defendant. Defendant leased the store which required them to have liability insurance. Plaintiff claimed defendant doesn't have proof of insurance.
2) Plaintiff sued for breach of contract.
3) Trial court dismisses case. Plaintiff appealed
Relevant Terms, Laws, and Cases
Third person beneficiary contract An individual or organization that is not a party to the contract, known as third party, but the contract is made for their benefit e.g. life insurance policy and a contract to purchase an item for a third party.
Intended beneficiary is a third party which was intended to benefit from contract.
Incidental beneficiary an unintended party that benefits from the contract, they are not third party beneficiary and can't enforce contract.
Barney v. Unity Paving, Inc case cited that third party has standing to sue if they are intended beneficiary and expressly stated in the contract.
Appeals court affirmed the decision.
The court finds no evidence in the lease agreement by defendant that the liability insurance were for the benefit of customers. It found that the liability insurance was only to protect the lessee and lessor. Hence, plaintiff can't sue for breach of contract.
Third person beneficiary contract An individual or organization that is not a party to the contract, known as third party, but the contract is made for their benefit. E.g. life insurance policy, and a contract to purchase an item for a third party. Third parties have legal rights to enforce these contracts.