Third Party Beneficiaries
A.  Issues arise when two contracting parties intend to benefit a third party
B.  Vocabulary
1.  Third party beneficiary – not a party to the K, but able to enforce a K                 that others made for her benefit
2.  Promisor – person who is making the promise that benefits the third                 party
3.  Promisee – person who obtains the promise that benefits a third party
4.  Intended beneficiary – named beneficiary (HAS K RIGHTS)
a.  Donee beneficiary (any intended except for creditor)
b.  Creditor beneficiary – creditor of the promise (any creditor)
5.  Incidental beneficiary – not named (DOES NOT HAVE K RIGHTS)
C.  Canceling or modifying a K when there is a third party beneficiary
1.  Can cancel or modify unless:
a.  The third party knows of the K, and
b.  The third party relied, or
c.  The third party assented
2.  If #1 is met, then can only be cancelled/modified if:
a.  Third party beneficiary consents, or
b.  Contract otherwise provides
D.  Who can sue whom?
1.  Beneficiary can sue the promisor
2.  Promisee can sue the promisor
3.  Beneficiary v. promisee
a.  Donee beneficiary – cannot sue promisee
b.  Creditor beneficiary – can sue the promisee on the pre-existing                     debt
E.  Defenses
1.  Promisor retains any defenses against the beneficiary that he would                 have had against the promise