Donee Beneficiaries
Donee beneficiaries are individuals or entities that benefit from a contract made between two other parties, where the intent is to provide a gift or benefit to them. In this context, third-party rights mean that a donee beneficiary can enforce the contract if it is not fulfilled, even though they are not one of the original parties involved. For example, if a friend promises to pay for a gift for you as part of a deal with someone else, you have the right to claim that benefit if it isn't delivered.
Additional Insights
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A donee beneficiary is a person or group who receives a benefit from a contract made between two other parties. In this situation, one party (the promisor) agrees to give something to the donee beneficiary as part of the contract's terms, even though the donee is not part of the agreement itself. For example, if a person purchases a life insurance policy and names their friend as the beneficiary, the friend becomes a donee beneficiary, entitled to receive the insurance payout when the insured person passes away.