A donee beneficiary:
A) is a third-party beneficiary to whom a gift of the contracted performance is given.
B) is a third-party beneficiary who is no longer a part of an agreement.
C) is a third-party beneficiary who incidentally benefits from a contract.
D) is a third party beneficiary who cannot recover the value of the promised performance.

Question

Quizplus · Accepted Answer

A third person is a donee beneficiary if the promisee's primary purpose in contracting was to make a gift of the contracted performance to the third party. The beneficiary can recover the value of the promised performance, while the promisee can recover damages resulting from nonperformance (usually only nominal damages).

A Donee Beneficiary