Question

Wright Company contracted with the city of St. Louis to train and employ disadvantaged youths. If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths, the youth would?

1) win, as he is an intended beneficiary
2) win, as he is a donor beneficiary
3) lose, as he is a creditor beneficiary
4) d) lose, as he is an incidental beneficiary

Answer 1

The disadvantaged youth would lose the lawsuit as they are an incidental beneficiary in the contract between Wright Company and the city of St. Louis.

Step-by-step explanation:

The disadvantaged youth would lose the lawsuit, as they are an incidental beneficiary in the contract between Wright Company and the city of St. Louis. An incidental beneficiary is someone who may benefit from a contract but is not specifically named or intended to benefit. In this case, the primary purpose of the contract is to train and employ disadvantaged youths, but the individual youth is not a direct party to the contract and therefore cannot sue for its breach.