Which of the Following Is True Regarding Factors Considered by a Court

question 60

Multiple Choice

Which of the following is true regarding factors considered by a court in determining whether a party is an intended or incidental beneficiary?

• A) Whether performance of the contract is done directly to the third party and whether the contract directly states that the third party is the benefiting party, but not the third party's ability to control the specifics of performance of the contract.
• B) The third party's ability to control the specifics of performance of the contract but not whether performance of the contract is done directly to the third party or whether the contract directly states that the third party is the benefiting party.
• C) Whether the contract directly states that the third party is the benefiting party but not the third party's ability to control the specifics of performance of the contract or whether performance of the contract is done directly to the third party.
• D) Whether performance of the contract is done directly to the third party and the third party's ability to control the specifics of performance of the contract, but not whether the contract directly states that the third party is the benefiting party.
• E) Whether performance of the contract is done directly to the third party, the third party's ability to control the specifics of performance of the contract, and whether the contract directly states that the third party is the benefiting party.

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Definitions:

Additional Business Income Tax

A tax that may be levied on businesses in addition to the standard income tax, based on various criteria such as location or type of business activity.

Partnership

An official business entity operated by two or more individuals who divide management duties and profit sharing.

Business Ownership

Business Ownership refers to the legal possession of a business, which includes the right to control its operations and profit from its activities.

Sole Proprietorship

A business structure where a single individual both owns and runs the company, bearing unlimited liability for its debts.