The principle that one who is not a direct party to a particular contract normally does not have rights under that contract is known as

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which FEB

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have with Flavell and which Jakes

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have with Flavell.

Assessment question

An exception to the doctrine of privity of contract arises when a contract is intended to benefit a

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party. A third party that is considered an intended beneficiary to a contract

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sue the promisor for breach of contract. A third party that is considered an incidental beneficiary to a contract

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sue the promisor for breach of contract.

Assessment question

In determining whether a beneficiary is an intended or incidental beneficiary, the presence of one or more of the following factors strongly indicates that the third party is an intended beneficiary to the contract:

whether performance is rendered

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to the third party,

if the third party has a right to

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$,$ and

if the third party is

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$.$

Assessment question

As a result of performance being rendered directly to Flavell, and Flavell$$s right to control the details of performance, Flavell will likely be considered an

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beneficiary. Therefore, Flavell

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sue to enforce the contract. It

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likely that the court would have ruled in favor of Flavell.

Assessment question

What If the Facts Were Different?

Assume that Jakes, instead of providing roofing repair to the residence, is a supplier of materials such as wood, nails, and sealant to FEB. FEB conducts all the work on the roof without assistance from Jakes.

As a supplier to FEB, Jakes$$s performance

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directly to Flavell, and Flavell

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have the right to control the details of Jakes$$s performance. Flavell

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have rights in the contract between Jakes and FEB, and Flavell is thus likely an

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beneficiary to the contract between Jakes and FEB. It

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likely that the court would have ruled in favor of Flavell against Jakes.