Contracts II

Restatement Second of Contracts § 302

Intended and Incidental Beneficiaries

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  1. Unless otherwise agreed between promisor and promisee, a beneficiary of a promise is an intended beneficiary if recognition of a right to performance in the beneficiary is appropriate to effectuate the intention of the parties and either
    1. the performance of the promise will satisfy an obligation of the promisee to pay money to the beneficiary; or
    2. the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.
  2. An incidental beneficiary is a beneficiary who is not an intended beneficiary.