Which statement about the promisor's liability to an intended TPB is correct?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Bar Exam with our Mnemonics Test. Boost your memory and understanding using flashcards and multiple choice questions, each with detailed hints and explanations. Get ready to ace your exam!

Multiple Choice

Which statement about the promisor's liability to an intended TPB is correct?

Explanation:
When a contract is formed for the benefit of an intended third-party beneficiary, that beneficiary gains the right to enforce the contract directly against the promisor. The promisor has a duty to perform to the intended TPB, so the promisor is liable to the intended TPB for breach. The third party is not in privity with the promisee, so their remedy is not against the promisee; instead, the remedy runs to the promisor. Therefore, the best statement is that the promisor is liable to the intended TPB, and the TPB cannot sue the promisee for breach—any action by the TPB would be to enforce the promise against the promisor.

When a contract is formed for the benefit of an intended third-party beneficiary, that beneficiary gains the right to enforce the contract directly against the promisor. The promisor has a duty to perform to the intended TPB, so the promisor is liable to the intended TPB for breach. The third party is not in privity with the promisee, so their remedy is not against the promisee; instead, the remedy runs to the promisor. Therefore, the best statement is that the promisor is liable to the intended TPB, and the TPB cannot sue the promisee for breach—any action by the TPB would be to enforce the promise against the promisor.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy