TN Bar Practice Questions - Tennessee Bar Examination Exam

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A contractor and a homeowner enter a contract for the contractor to build a deck, with payment to a lumber supplier whom the contractor owes money. The supplier is named to receive payment directly. The supplier is best characterized as which type of beneficiary?

An incidental beneficiary with no enforceable rights A delegatee A donee beneficiary only An intended (creditor) third-party beneficiary who may enforce the contract

Correct Answer:

An intended (creditor) third-party beneficiary who may enforce the contract

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