Can an intended beneficiary sue to enforce a contract?

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Multiple Choice

Can an intended beneficiary sue to enforce a contract?

When two parties contract with the aim of benefiting a third person, that third person can enforce the contract if they are an intended beneficiary. The promisee and promisor create an obligation that runs directly to the intended beneficiary, so the beneficiary has a right to sue the promisor to obtain the promised performance. This is different from incidental beneficiaries, who don’t have enforcement rights. So, for an intended beneficiary, breach of the contract by the promisor can be challenged in court by the beneficiary, even if the promisee doesn’t sue. The beneficiary’s rights arise from the contractual arrangement itself, reflecting the promise to confer a benefit on that third party.

When two parties contract with the aim of benefiting a third person, that third person can enforce the contract if they are an intended beneficiary. The promisee and promisor create an obligation that runs directly to the intended beneficiary, so the beneficiary has a right to sue the promisor to obtain the promised performance. This is different from incidental beneficiaries, who don’t have enforcement rights.

So, for an intended beneficiary, breach of the contract by the promisor can be challenged in court by the beneficiary, even if the promisee doesn’t sue. The beneficiary’s rights arise from the contractual arrangement itself, reflecting the promise to confer a benefit on that third party.

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