Author Question: In closely held corporations, stock transfer restrictions are used to achieve the corporate ... (Read 116 times)

tiara099 · **on:** Jun 24, 2018

In closely held corporations, stock transfer restrictions are used to achieve the corporate equivalent of delectus personae.
Indicate whether the statement is true or false

Question 2

a. What is a third party beneficiary? b. Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary. Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

ky860224 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

TRUE

Answer to Question 2

a. A third party beneficiary is one who benefits from a promise made in a contract but who is not a party to the contract.
b. An intended beneficiary is a third party intended by the two contracting parties to receive a benefit from their contract. An intended beneficiary may be either a donee or a creditor beneficiary. A third party is a donee beneficiary if the promisee's purpose in bargaining for and obtaining the agreement with the promisor was to make a gift to the beneficiary. A creditor beneficiary is an intended beneficiary who is a creditor of the promisee. An incidental beneficiary is a third party whom the two parties to a contract did not intend to benefit by their contract, but who nevertheless will receive a benefit from the contract. An intended beneficiary, but not an incidental beneficiary, may sue to enforce rights under the contract.