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Third-Party Beneficiaries

This quiz covers the concept of third-party beneficiaries in contract law, including their rights, remedies, and defenses.

14 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is a third-party beneficiary in a contract?

  1. A person who is not a party to the contract but who receives a benefit from it.
  2. A person who is a party to the contract but who does not receive a benefit from it.
  3. A person who is not a party to the contract but who is harmed by it.
  4. A person who is a party to the contract and who is harmed by it.
Question 2 Multiple Choice (Single Answer)

What are the two main types of third-party beneficiaries?

  1. Intended beneficiaries and incidental beneficiaries.
  2. Direct beneficiaries and indirect beneficiaries.
  3. Primary beneficiaries and secondary beneficiaries.
  4. Vested beneficiaries and contingent beneficiaries.
Question 3 Multiple Choice (Single Answer)

What rights do intended third-party beneficiaries have?

  1. The right to enforce the contract.
  2. The right to sue for breach of contract.
  3. The right to receive the benefit of the contract.
  4. All of the above.
Question 4 Multiple Choice (Single Answer)

What defenses can a promisor assert against an intended third-party beneficiary?

  1. The defense of lack of privity.
  2. The defense of impossibility.
  3. The defense of frustration of purpose.
  4. All of the above.
Question 5 Multiple Choice (Single Answer)

What is the doctrine of promissory estoppel?

  1. A doctrine that prevents a promisor from revoking a promise that has been relied upon by a third party.
  2. A doctrine that allows a third party to enforce a contract even if they are not a party to the contract.
  3. A doctrine that imposes a duty on a promisor to disclose all material facts to a third party.
  4. A doctrine that allows a third party to recover damages from a promisor for breach of contract.
Question 6 Multiple Choice (Single Answer)

What are the elements of a promissory estoppel claim?

  1. A promise, reliance on the promise, and a detriment suffered as a result of the reliance.
  2. A promise, a benefit conferred on the promisor, and a detriment suffered by the promisee.
  3. A promise, a duty to disclose, and a breach of that duty.
  4. A promise, a misrepresentation, and a reliance on the misrepresentation.
Question 7 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and an assignee?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while an assignee is a person who takes over the rights and obligations of a party to a contract.
  2. A third-party beneficiary is a person who is not a party to a contract, while an assignee is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while an assignee is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while an assignee is a person who is a party to a contract and who benefits from it.
Question 8 Multiple Choice (Single Answer)

Can a third-party beneficiary enforce a contract?

  1. Yes, if they are an intended beneficiary.
  2. Yes, if they are an incidental beneficiary.
  3. No, third-party beneficiaries cannot enforce contracts.
  4. It depends on the jurisdiction.
Question 9 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a creditor beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a creditor beneficiary is a person who is owed money under a contract.
  2. A third-party beneficiary is a person who is not a party to a contract, while a creditor beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a creditor beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a creditor beneficiary is a person who is a party to a contract and who benefits from it.
Question 10 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a donee beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a donee beneficiary is a person who receives a gift under a contract.
  2. A third-party beneficiary is a person who is not a party to a contract, while a donee beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a donee beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a donee beneficiary is a person who is a party to a contract and who benefits from it.
Question 11 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a contingent beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a contingent beneficiary is a person who receives a benefit from a contract only if a certain event occurs.
  2. A third-party beneficiary is a person who is not a party to a contract, while a contingent beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a contingent beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a contingent beneficiary is a person who is a party to a contract and who benefits from it.
Question 12 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a vested beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a vested beneficiary is a person who has a right to receive a benefit from a contract.
  2. A third-party beneficiary is a person who is not a party to a contract, while a vested beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a vested beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a vested beneficiary is a person who is a party to a contract and who benefits from it.
Question 13 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a remainder beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a remainder beneficiary is a person who receives a benefit from a trust.
  2. A third-party beneficiary is a person who is not a party to a contract, while a remainder beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a remainder beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a remainder beneficiary is a person who is a party to a contract and who benefits from it.
Question 14 Multiple Choice (Single Answer)

What is the difference between a third-party beneficiary and a reversionary beneficiary?

  1. A third-party beneficiary is a person who receives a benefit from a contract, while a reversionary beneficiary is a person who receives a benefit from a life estate.
  2. A third-party beneficiary is a person who is not a party to a contract, while a reversionary beneficiary is a person who is a party to a contract.
  3. A third-party beneficiary is a person who is harmed by a contract, while a reversionary beneficiary is a person who benefits from a contract.
  4. A third-party beneficiary is a person who is not a party to a contract and who is harmed by it, while a reversionary beneficiary is a person who is a party to a contract and who benefits from it.
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