Multistate Bar Examination Practice Question

Sarah enters into a contract with Jake to paint her house. The contract specifies that payment will be made directly to Linda, Sarah's sister, as part of a gift to support Linda's small business. Linda does not sign the contract and is not a party to it. Which of the following best describes Linda's ability to enforce the contract?

  • Linda can enforce the contract if she assigns her rights to another party.

  • Linda has limited rights under the contract since she is not a party.

  • Linda is an incidental beneficiary and is not able to enforce the contract.

  • Linda is an intended third-party beneficiary and can enforce the contract.

Multistate Bar Examination
Contracts
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