An Example of a Third-Party Beneficiary Under Contract Law Includes

question 60

True/False

An example of a third-party beneficiary under contract law includes a bank having a large loan with a client which requires an audit as part of the loan agreement. In these cases, though the contract for the audit engagement is between the auditor and the client, both the auditor and the client are aware that the bank will be relying on the audited financial statements.

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Definitions:

Brain Waves

Brain waves refer to the patterns of electrical activity generated by the brain and can be detected using EEG (electroencephalography).

Amphetamines

A class of stimulant drugs that increase activity in the brain and are used to treat conditions like ADHD and narcolepsy.

Disorganized Behavior

Actions or behaviors that are erratic, unpredictable, and lack a clear purpose or goal.

Hallucinations

Sensory experiences that appear real to the individual but are created by the mind, without an external stimulus.