Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd. Cantwell owes Broadnorf $4,000. Ferd had never heard of Broadnorf before his recent contract with Cantwell.

Broadnorf Warbeagle appears to be a
A)incidental beneficiary.
B)creditor beneficiary.
C)assignor.
D)donee beneficiary.

Question

Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd. Cantwell owes Broadnorf $4,000. Ferd had never heard of Broadnorf before his recent contract with Cantwell.
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Broadnorf Warbeagle appears to be a​
A)incidental beneficiary.
B)creditor beneficiary.
C)assignor.
D)donee beneficiary.

Quizplus · Accepted Answer

Broadnorf Warbeagle is a creditor beneficiary because he is designated to receive benefits from a contract between Cantwell and Ferd to satisfy a debt Cantwell owes to Broadnorf.

Broadnorf Warbeagle Is Specifically Designated to Receive Cash Benefits of $2,000