Learn It: Rights of Third- Party Beneficiaries Check Your Understanding: Rights of Third-Party Beneficiaries Between intended and incidental beneficiaries to a contract, the distinction regarding their rights is very clear: Total points:--/1 Attempts left: 3 Intended Beneficiaries- May sue the parties on the contract, even though they were not a party to the contract. Which of the following may sue on a contract, to which they are not a party? Incidental Beneficiaries- Cannot sue the parties on the contract. Intended beneficiaries Incidental beneficiaries For example: Patty owed Darnell $4,000. However, Patty recently won an art commission for the creation of a statute for an art museum. In the terms of the contract, Patty agreed to create the statute and stated that any payment made to her should be directed to Darnell. Here, the contract is between Patty and the art museum. Darnell is a third-party to the contract, but he is an intended beneficiary of it because he is a creditor beneficiary of Patty. As such, if the art museum fails to make proper payment, Darnell has the right to sue the art museum on the contract even though he was not a party to it. Neither intended or incidental beneficiaries Both incidental and intended beneficiaries