A creditor beneficiary cannot sue to enforce the terms of a contract because he is not a party to the contract.

Question

Quizplus · Accepted Answer

A creditor beneficiary is a third party who benefits from the contract between two parties, where one of the parties has a debt to the beneficiary. While the beneficiary is not a party to the contract, he may still be able to sue to enforce the terms of the contract if he is intended to benefit from it and the rights are assignable. Therefore, the statement is false.

A Creditor Beneficiary Cannot Sue to Enforce the Terms of a Contract