Describe the differences between an intended third-party beneficiary and an incidental beneficiary.
What will be an ideal response?
When parties enter into a contract, they can agree that the performance of one of the parties should be rendered to or directly benefit a third party. This third party is called an intended third-party beneficiary. An intended third-party beneficiary can enforce the contract against the party who promised to render performance. On the other hand, when parties to a contract unintentionally benefit a third party when a contract is performed this third party is referred to as an incidental beneficiary. An incidental beneficiary has no rights to enforce or sue under other people's contracts.
You might also like to view...
Behavioral finance suggests that investors react to new information in an efficient manner such that security prices accurately reflect the new information
Indicate whether the statement is true or false.
The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is -$401,414. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
A. $48,170 B. $401,414 C. $80,800 D. $50,177
The probability that Z is less than -2 is the same as one minus the probability that Z is greater than +2
Indicate whether the statement is true or false
Epiphany is an all-equity firm with an estimated market value of $300,000. The firm sells $250,000 of debt and uses the proceeds to purchase outstanding equity
Compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity. A) 0.42, 0.58 B) 0.50, 0.50 C) 0.17, 0.83 D) 0.58, 0.42