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Source Third-Party Beneficiaries Third-Party Beneficiaries Matched to this deck.

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0 tracked cards Contracts

A contractor owed a supplier $30,000 for materials. The contractor later contracted with an owner to renovate a store. The renovation contract stated that the owner would pay $30,000 of the contract price directly to the supplier to satisfy the contractor's materials debt. The owner completed the renovation but refused to pay the supplier.
Which statement best describes the supplier's rights?

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The supplier may enforce only if the contract uses the words third-party beneficiary. The supplier is barred because a creditor beneficiary is never allowed to sue the promisor. The supplier cannot enforce because the owner and contractor could have chosen another method of payment. The supplier is an intended beneficiary because the contract identifies the supplier as the person to be paid in satisfaction of the contractor's debt.

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