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2. After his nephew Payton was admitted to Harvard in March, Doug decided to give Payton a new car as a graduation present. Doug entered

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2. After his nephew Payton was admitted to Harvard in March, Doug decided to give Payton a new car as a graduation present. Doug entered into a contract with Fred's BMW Autowerks to purchase a new BMW for $55,000 and directed that it be delivered to Payton at his high school graduation in May. Doug also told Fred's that the title to the BMW should be issued in Payton's name; wrote a check to Fred's BMW Autowerks for the full purchase price of the vehicle; and called Payton to tell him about the gift, in response to which Payton said "thank you" and "I couldn't be more excited about the car." Doug then left for a six-month sabbatical in Armenia. There was a recall of BMWs in April because of fraudulent emissions testing. As a result, Fred's BMW Autowerks was unable to deliver the BMW to Payton. In fact, no BMWs were expected to be delivered by Fred's until after July 1. Two weeks after his graduation in the middle of May, Payton sued Fred's Autowerks for breach of contract. Payton claimed that he was a third party beneficiary of the contract between Doug and Fred's BMW Autowerks and that he was entitled either to prompt delivery of the purchased BMW model or a refund of the purchase price paid by Doug. Case Study Is Payton a third party beneficiary of the contract between Doug and Fred's BMW Autowerks? Does Payton have the right to sue Fred's BMW Autowerks for breach of contract? Explain fully

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