A ________ exists when the purpose of the promisee in requiring a promisor's performance to be made to a third person is to fulfill a legal obligation of the promisee to the third person.
A)void contract
B)quasi-contract
C)creditor-beneficiary contract
D)donee-beneficiary contract

Question

Quizplus · Accepted Answer

A creditor-beneficiary contract exists when the promisee requires the promisor's performance to be made to a third person in order to fulfill a legal obligation that the promisee owes to the third person. In this type of contract, the third person (creditor beneficiary) has a legal right to enforce the contract against the promisor. A quasi-contract is not a true contract, but rather a legal fiction created by the courts in certain situations where there is no actual contract between the parties, but one party has received a benefit that would be unjust to retain without compensation. Void contracts are illegal from the outset and have no legal effect, while donee-beneficiary contracts involve a promise made by the promisor to the promisee to give a gift to a third person (donee beneficiary).

A ________ Exists When the Purpose of the Promisee in Requiring