If a contract requires that performance be rendered directly to a third party, the third party is an intended beneficiary.

Question

If a contract requires that performance be rendered directly to a third party, the third party is an intended beneficiary.​

Quizplus · Accepted Answer

When a contract explicitly states that the performance should be rendered directly to a third party, it creates a third-party beneficiary contract, and the third party becomes an intended beneficiary. This means that the third party has the right to enforce the contract and receive the benefits therein. Therefore, the statement is true.

If a Contract Requires That Performance Be Rendered Directly to a Third