Multistate Bar Examination Practice Question

The correct answer is that the employee is an 'intended beneficiary.' An intended beneficiary is someone the contracting parties explicitly intend to benefit and who has enforceable rights under the contract. The landscaping services were specifically arranged to benefit the employee, establishing intent between the contracting parties to provide some service or performance directly to this third party. Incidental beneficiaries, by contrast, may benefit from the performance of a contract but were not intended by the parties to have any enforceable rights. Donee beneficiaries and creditor beneficiaries are subsets of intended beneficiaries depending on the purpose of the contract, but the general category of 'intended beneficiary' is correct in this context.