Question

Which statement most accurately describes third party beneficiary rights?

1) A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.
2) If a promisee intended to make a gift to the beneficiary, the beneficiary may not enforce the contract.
3) An intended third party beneficiary has no enforceable rights in a contract.
4) Incidental beneficiaries have enforceable rights against both contracting parties.

Answer 1

The most accurate description of third party beneficiary rights is that such a beneficiary may enforce a contract if they were intended to benefit from it and it satisfies a duty owed to them.

Step-by-step explanation:

The statement that most accurately describes third party beneficiary rights is: A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary. Contractual rights are based on property rights and allow individuals to enter into agreements regarding the use of their property with the support of the legal system in case of noncompliance. This property includes the right to enter into contracts with other parties. If a third party is an intended beneficiary with a clear benefit from the contract, and the fulfillment of the contract satisfies an obligation that one party has to the beneficiary, then the beneficiary has enforceable rights under the contract.