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.

The fact situation suggests the existence of
A)third-party rights and a delegation of duties.
B)an accord and satisfaction.
C)a substantial performance of a liquidated damage clause.
D)a statutory mutual assent.

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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The fact situation suggests the existence of​
A)third-party rights and a delegation of duties.
B)an accord and satisfaction.
C)a substantial performance of a liquidated damage clause.
D)a statutory mutual assent.

Quizplus · Accepted Answer

Broadnorf Warbeagle is a third-party beneficiary of the contract between Cantwell and Ferd, where Ferd's obligation to pay $2,000 to Broadnorf creates third-party rights. There is no delegation of duties mentioned, as the duty to pay remains with Ferd.

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