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Source Third-Party Beneficiaries Complete Contracts and UCC Article 2 List Matched to this deck.

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0 tracked cards Contracts

A theater promised a promoter that it would pay $20,000 of ticket proceeds to a named charity. The contract required the promoter to sell at least 1,000 tickets before any proceeds payment was due. The promoter sold only 600 tickets. The charity sued the theater for $20,000 as an intended beneficiary.
Which statement best describes the theater's defense?

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The beneficiary may enforce the promise free of all defenses between promisor and promisee. The promisor may assert contract defenses against the beneficiary that would have been available against the promisee. The promisor may avoid liability solely because the beneficiary did not sign the contract. The beneficiary may enforce only if the promisor separately promised the beneficiary to waive defenses.

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