Crucial Exams

Multistate Bar Examination Practice Question

Laura enters into a contract with a catering company to provide services for her daughter's wedding. In the contract, Laura specifies that any payments for the catering services will be made directly to the charity organization Helping Hands. Helping Hands will receive 20% of the contract price. Helping Hands has not signed or negotiated the contract. Which statement best describes Helping Hands' rights under this agreement?

  • Helping Hands does not have enforceable rights under the contract since they are not a direct party.

  • Helping Hands qualifies as an intended third-party beneficiary, allowing them to enforce the contract.

  • Helping Hands can enforce the contract contingent upon their subsequent agreement.

  • Helping Hands is considered an incidental beneficiary, limiting their ability to enforce the contract.

Multistate Bar Examination
Contracts
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