Law -Case Response (Term Paper Sample)

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Law -Case Response
On many occasions, the parties to a contract are not the only people who have duties or rights arising from the contract. Third parties may have duties or rights in the contract and are of three categories namely assignees, delegates and beneficiaries. The case involving Thomas, Jessie, and Douglas requires determination of third-party beneficiaries. A third-party beneficiary is defined as a person who stands to enjoy benefits of a contract they never signed. An illustration of a third party recipient or beneficiary is exemplified in the case of a life insurance policy. The person who is compensated or paid by the insurance company is the third-party beneficiary.
Referring to the case involving Douglas, Thomas, and Jessie, the main task in this paper is to decide whether Douglas is a third party recipient/beneficiary to Thomas and Jessie contract. For Douglas to qualify as a third-party recipient there are conditions that must have been met at the formation of the contract between Jessie and Thomas. In order for Douglas to have a right in Thomas and Jessie’s contract, he must prove that he is an intended beneficiary and not an incidental recipient. Jessie entered in a contract with Thomas and was given $1000 repayable within 30 days.
At the formation of this contract there was no expressed intention from Thomas or evidence that the money to be repaid was to benefit Douglas (a third party). This makes Douglas and incidental rec...