Question

Tyron purchased a vacant lot and entered into a contract with BZ Inc. to construct a shopping center on the site. Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center. Tyron was unable o raise the necessary capital and was unable to perform the contract with BZ, Inc. Douglas sued Tyron for breach of contract as a third party beneficiary. Douglas will probably ___________.

1) win a third party creditor beneficiary.
2) win a third party donee beneficiary.
3) lose as a third party incidental beneficiary.
4) lose as a third party creditor beneficiary.

Answer 1

Douglas will likely lose as a third party incidental beneficiary since he is not a specifically named beneficiary in the contract between Tyron and BZ Inc.

Step-by-step explanation:

Douglas will probably lose as a third party incidental beneficiary. To be classified as a third party beneficiary, Douglas must have a direct and intended benefit from the contract between Tyron and BZ Inc. In this case, Douglas built a restaurant on an adjoining property in anticipation of the planned shopping center, but he is not a specifically named beneficiary in the contract. Therefore, he is considered an incidental beneficiary and cannot enforce the contract against Tyron.