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.

Question

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A third person is considered a donee beneficiary if the main intent of the promisee in entering into a contract was to give a gift to that third party. This means that the third party has rights to enforce the contract even though they are not a party to it.

A Third Person Is a Donee Beneficiary If the Promisee's