Lydia's father has named Lydia in his will as the inheritor of his farm. He has also named her as a beneficiary in his insurance policy. Lydia is:
A) a donee beneficiary.
B) an incidental beneficiary.
C) the assignee by novation.
D) a creditor beneficiary.

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. Life insurance contracts are a common form of donee beneficiary contract. In this scenario, Lydia is a donee beneficiary.

Lydia's Father Has Named Lydia in His Will as the Inheritor