Tyron Purchased a Vacant Lot and Entered into a Contract

question 41

Multiple Choice

Tyron purchased a vacant lot and entered into a contract with BZ Inc.to construct a shopping center on the site.Douglas heard about this contract and built a restaurant on an adjoining piece of property because of the planned shopping center.Tyron was unable to raise the necessary capital and was unable to perform the contract with BZ,Inc.Douglas sued Tyron for breach of contract as a third party beneficiary.Douglas will probably

• A)win as a third party creditor beneficiary.
• B)win as a third party donee beneficiary.
• C)lose as a third party incidental beneficiary.
• D)lose as a third party creditor beneficiary.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Producer Surplus

The difference between the price that suppliers actually receive and the minimum price they would be willing to accept. It measures the net gains to producers and resource suppliers from market exchange. It is not the same as profit.

Soft Coal

Another term for bituminous coal; a type of coal known for its high moisture content and smoke-producing properties.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the amount of the good or service that suppliers are willing and able to provide at various prices.