Randy and Donald were property developers,and decided to construct a condominium in a certain neighborhood.Jim,who owned a chain of restaurants,heard of this agreement,and opened a new restaurant in the same neighborhood even before the condominium construction began.However,the plan for the condominium was not approved by the state authorities,and the project was cancelled.Jim suffered losses as a result,but he had no rights in the contract because he was a(n):
A) material beneficiary.
B) substantial beneficiary.
C) incidental beneficiary.
D) third-party beneficiary.

Question

Quizplus · Accepted Answer

Jim was an incidental beneficiary in the contract between Randy and Donald for the construction of the condominium. As an incidental beneficiary, he had no legal rights in the contract and could not claim damages when the project was cancelled.

Randy and Donald Were Property Developers,and Decided to Construct a Condominium