CNMI Bar Practice Questions - Northern Mariana Islands Bar Examination Exam

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A and B contract for B to receive payment, and the contract is made expressly for the benefit of C, a non-party. C's rights vest and B breaches. What is C's status?

C is an incidental beneficiary with no enforceable rights C must first become a party by novation to sue C may sue only the promisee, not the promisor C is an intended third-party beneficiary who may sue to enforce the contract once rights have vested

Correct Answer:

C is an intended third-party beneficiary who may sue to enforce the contract once rights have vested

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