The Two General Categories of Third-Party Beneficiaries to a Contract

question 70

Multiple Choice

The two general categories of third-party beneficiaries to a contract are:

• A) delegated and assigned.
• B) declared and assumed.
• C) incidental and intended.
• D) original and assumed.
• E) precedent and subsequent.

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Definitions:

Contract Formation

The process whereby parties agree upon and establish the terms of a contract, leading to a binding legal agreement.

Relaxation of Requirements

The easing or reduction of stringent rules, standards, or conditions, often to accommodate special circumstances.

Material Misrepresentation

A statement that is significantly untrue or misleading and, if known to be such, could have influenced the decision-making of a party in a contract or agreement.

Voidable

A legal term describing a transaction or agreement that is valid but may be annulled by one of the parties involved.