In Determining Whether a Party Is an Incidental or Intended

question 39

True/False

In determining whether a party is an incidental or intended beneficiary, one factor courts consider is whether the contract directly states that the third party is the benefiting party.

---

Definitions:

Modified Duration

A measure indicating the sensitivity of a bond's price to changes in interest rates, estimating the percentage price change for a parallel shift in yield curves.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.

Market Efficiency

A concept that describes the degree to which stock prices and other securities' prices reflect all available, relevant information.