Shade Tree Landscaping Company enters into a contract with Jill to landscape Jack's yard, using Fertile Nursery to supply trees and bushes. Maria owns the lot next to Jack's property. The landscaping is a gift from Jill to Jack, who is Jill's friend, but they are not related. What type of beneficiary is Jack? What type of beneficiary is Maria? What type of beneficiary is Fertile Nursery? If Shade Tree refuses to do the job, who can enforce the contract against it?
What will be an ideal response?
Jack is an intended, donee beneficiary. Shade Tree and Jill entered into the contract with the express purpose of benefiting Jack. Maria is an incidental beneficiary. Maria's property value will go up once Jack's property is improved, but that is not the intent of the parties to the contract. Fertile Nursery is also an incidental beneficiary, because it will also benefit from the contract between Jill and Shade Tree, but that is not the intent of either contracting party. If Shade Tree subsequently refuses to do the job, Jack or Jill can enforce the contract against Shade Tree. In Jack's situation, when a contract is made for the express purpose of giving a gift to a third party, the third party (Jack, the donee beneficiary) can sue the promisor (Shade Tree) directly to enforce the promise. Jill can enforce the contract, of course, because she is a party to it.
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