A Third Person Is a Donee Beneficiary If the Promisee's

question 49

True/False

A third person is a donee beneficiary if the promisee's primary purpose in contracting was to make a gift of the contracted performance to the third party.

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Definitions:

General Rule

A principle or guideline that applies broadly across different contexts or situations, often serving as a standard for decision-making.

External Sales Price

The price at which a product or service is sold to customers outside of the company, as opposed to internal transfer pricing within different divisions of the same company.

Opportunity Cost

Opportunity Cost refers to the potential benefits or income lost when choosing one alternative over another.

Direct Expenses

Costs that can be directly attributed to a specific product, service, or project, such as raw material costs.