Question

Hansel wants to give Gretel a surprise gift. He enters into a written contract with Shade Tree Landscaping to landscape Gretel’s yard, including the planting of trees and shrubs. Shade Tree Landscaping enters into an agreement with Pretty Good Nursery in which Pretty Good Nursery agrees to supply the necessary trees and shrubs. All the landscaping work is to be performed while Gretel is away on a two-week retreat on "Following the Bread Crumb Trail to Your Inner Witch." If Shade Tree refuses to perform the landscaping, who can enforce the contract?

A. Neither Hansel nor Gretel.
B. Hansel or Gretel.
C. Gretel.
D. Hansel.

Answer 1

B. Hansel or Gretel.

Step-by-step explanation:

Hansel signed a contract with Shade Tree Landscaping so he can enforce the contract, i.e. sue Shade Tree if they do not perform their part. But Gretel, as a third party beneficiary, can also sue Shade Tree for breach of contract. In contract law, a third party beneficiary can sue the breaching party even if it was not part of the contract but the breach of the contract generates some type of suffering to them.

In this case, Gretel was not part of the contract, but because Shade Tree is not performing, she will be hurt by it.