A third party is categorized as a donee beneficiary when:
A)the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to the third party.
B)the benefit derived by the third party was merely an unintended by-product of a contract that was created for the benefit of those who were parties to it.
C)he/she is unable to establish that the contract was made with the intent to benefit him/her.
D)the promisor's performance is intended to satisfy a legal duty that the promisee owes to the third party.

Question

Quizplus · Accepted Answer

Intended beneficiaries are often classified as either creditor or donee beneficiaries.If the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to a third party,that third party is classified as an intended donee beneficiary.

A Third Party Is Categorized as a Donee Beneficiary When