Nick, a builder, contracts with the city of Chicago to build a new convention center. Jack, a hotel owner, stands to benefit once the convention center is built. Jack decides to sue Nick if Nick backs out of the contract. Which of the following statements is true of this scenario?
A) Jack cannot sue Nick because he is an incidental beneficiary.
B) Jack can sue Nick because he is a donee beneficiary.
C) Jack can sue Nick because Jack is a citizen of Chicago.
D) Jack cannot sue Nick because he is a creditor beneficiary.

Question

Quizplus · Accepted Answer

Occasionally, the performance of a contract intended solely for the benefit of the promisee will also incidentally benefit a third person. These incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.

Nick, a Builder, Contracts with the City of Chicago to Build