Question

Ace Finance Company is a creditor beneficiary in a deal that involves Brad and Carol. Ace, like most creditor beneficiaries, is:_____.
a. a donee beneficiary.
b. an incidental beneficiary.
c. an intended beneficiary.
d. none of the above.

Answer 1

Answer: Intended beneficiary

Explanation:

An Intended Beneficiary simply means a third-party beneficiary. It is sometimes called a direct beneficiary as well. It should be noted that an intended beneficiary benefits from a contract based on what the two other parties mainly involved in the contract have agreed on.

In the scenario in the question, since Ace Finance Company is a creditor beneficiary in a deal that involves Brad and Carol. Ace, it means that Ace Finance Company is an intended beneficiary.