The municipality of College Town enters into a contract with Wooster Inc. to have the town's roads repaired. Katie is a resident of College Town and will be considered a(n):
A) donee beneficiary.
B) incidental beneficiary.
C) implied beneficiary.
D) creditor beneficiary.

Question

Quizplus · Accepted Answer

Occasionally, the performance of a contract intended solely for the benefit of the promisee will incidentally benefit a third person. Members of the general public are generally held to be incidental beneficiaries of contracts such as street repair contracts entered into by municipalities or other government units. In this scenario, Katie will be an incidental beneficiary.

The Municipality of College Town Enters into a Contract with Wooster