Ace Construction Company contracts to build a retirement community on land owned by Smith. Jones, an adjoining landowner, expect

Question

4 years ago

11

Ace Construction Company contracts to build a retirement community on land owned by Smith. Jones, an adjoining landowner, expect

s the value of his land to increase greatly once the retirement community is built. Ace Construction Company then breaches the contract to build the retirement community. In this case:
A.Jones can recover against Smith because he was a party to the contract with the construction company
B. Jones cannot recover against the construction company as an incidental beneficiary of the company's contract with Smith.
C. A and B are both true.
D. None of the above is true.

Business

1 answer:

Arada [10] · Answer 1 · 2022-02-12T21:12:12+03:00

Answer:

d.) Jones is an incidental beneficiary and has no right to sue for Ace Construction's breach of the contract.

Explanation:

Jones was not a direct party to the contract, in fact, any profit which he was supposed to receive was incidental in nature and thus he cannot sue Ace Construction's breach of the contract.