Question

Kathy and Tom have entered into a contract in which Mike has been named and included as an intended beneficiary by Kathy. Should Tom or Kathy breach the contract, Mike may sue both Tom and Kathy for breach of contract.True/False

Answer 1

Answer: TRUE.

Explanation: A contract can be defined as an agreement which the law will enforce in some way. A legally binding contract must contain at least a commitment or offer, by an offeror to and accepted by an offeree to do something in the future.

A breach of contract in legal terms can be said to be an unjustifiable failure to perform under the terms of a contract when performance is due. This can be said to be a civil wrong which in any case can be sued for.

In the question, Kathy and Tom( the offeror) have entered into a contract with Mike (the offeree), assuming there's a breach of contract, which is a civil wrong, then Mike has every right to sue. Correct answer is TRUE.

Answer 2

Answer: This is "TRUE"

Explanation: Mike may sue both Tom and Kathy if their breach the contract, because he has the legal right to do so. Mike is a beneficiary to their contract agreement, this means that Mike is part of the contract agreement.

Mike can only sue Tom for equity damage if Tom breach the contract, because Mike being the named beneficiary, is just a third party agreement with Tom. Mike can also sue Kathy because Kathy has entered an agreement with him, when he made him his Beneficiary, so he can also sue Kathy for equity damage.