In Which of the Following Situations Is There a Third

question 68

Multiple Choice

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

• A) Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business.
• B) Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers.
• C) A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.
• D) A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

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Definitions:

Civil War Amendments

Amendments added to the U.S. Constitution after the American Civil War, specifically the 13th, 14th, and 15th Amendments, which abolished slavery, extended citizenship rights, and granted voting rights regardless of race.

Reconstruction

The period following the Civil War in the United States, during which the Southern states were reorganized and reintegrated into the Union from 1865 to 1877.

In re Gault

A landmark 1967 U.S. Supreme Court decision that granted juveniles accused of crimes the same due process rights as adults, including the right to legal counsel, the right to notice of the charges, the right to confront witnesses, and the right to remain silent.

Constitutional Right

A right granted and protected by a country's constitution, often referring to those rights considered fundamental to the functioning of the society.