Question

Claudia contracts with Friendly Paving Co. to install a new driveway. To pay for this work, Claudia transfers to Friendly Paving Co. her right to receive payment from Clifford for a loan she made him. Friendly Paving Co. is the:

Answer 1

Creditor beneficiary

Step-by-step explanation:

The first contract is between Claudia and Clifford, in which Clifford is the debtor to the creditor Claudia.

This means that Claudia holds a legal contractual right to receive a payment from Clifford.

Now there is a second contract between Claudia and Friendly Paving Co. this is basically the agreement to install driveway. For this Claudia has to pay to Friendly Paving Co.

For this if she transfers her right of receiving the payment from Clifford towards Friendly Paving co. then she announces Friendly Paving Co. to be a creditor beneficiary.