In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?
A) Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business.
B) Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers.
C) A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.
D) A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

Question

Quizplus · Accepted Answer

In this situation, the doctor is an incidental beneficiary because the insurance contract is primarily between the insured and the insurance company. The doctor cannot enforce the agreement as they are not the intended beneficiary of the contract.

In Which of the Following Situations Is There a Third