In a contract in which a tenant borrowed money from a bank for the purpose of adding a bathroom to her apartment, the landlord is:
A) a direct beneficiary.
B) in privity of contract with the tenant.
C) a third-party beneficiary.
D) an incidental beneficiary.

Question

Quizplus · Accepted Answer

The landlord is an incidental beneficiary because the primary contract is between the tenant and the bank, and any benefit to the landlord is secondary and unintended.

In a Contract in Which a Tenant Borrowed Money from a Bank