Question

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

Answer 1

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.