Question

Tami contracts with Construction Inc. to build a valuable structure on her yard. Tami's neighbor, Frank, is pleased about this construction project as this improvement will increase the value to his property. Neither Tami nor Construction, Inc. made the contract with the intent to benefit Frank. Can Frank sue Tami or Construction, Inc. and recover damages if either party breaches the contract? Group of answer choices Yes, Frank can sue either party since he is an intended beneficiary. Yes, Frank can only sue Tami since she is his next door neighbor. Frank can only sue if he requests the court for damages within 6 months of the breach. Frank will not be successful if he sues either party because he is an incidental beneficiary.

Answer 1

Answer:

Tami and Construction Inc. Vs. Frank

Can Frank sue Tami or Construction, Inc. and recover damages if either party breaches the contract?

Frank will not be successful if he sues either party because he is an incidental beneficiary.

Explanation:

Frank is just an incidental beneficiary and a third party who benefits from the contract between Tami and Construction, Inc.  The contract is not intended to benefit Frank.  Therefore, Frank does not have any legal rights under the contract.  He cannot successfully sue Tami or Construction, Inc. if either party breaches the contract.  He lacks the contractual rights to sue either party.