Final answer:
The statement given is false because an intended beneficiary does have the right to sue the promisor for failure to perform as promised, in contrast to an incidental beneficiary who does not hold such legal rights.
Step-by-step explanation:
The statement is false. An intended beneficiary is a third party who is not directly involved in a contract but is intended by the contracting parties to benefit from the contract. This person or group has legal rights and can sue the promisor if the terms are not fulfilled.
On the other hand, an incidental beneficiary is someone who may benefit from the execution of the contract but has no legal rights to enforce the contract terms. It is important to distinguish between the two as this determines the ability to sue for breach of contract.
Therefore, if a third party is an intended beneficiary, they certainly have the rights to demand performance or sue for failure to perform as promised. If they are incidental beneficiaries, they do not possess such rights.