Which party may sue to enforce the contract for the benefit of an intended beneficiary?

• A. An intended beneficiary may sue to enforce the contract against the promisor.
• B. An intended beneficiary may sue only the promisee.
• C. An intended beneficiary has no rights until the contract is performed.
• D. An intended beneficiary may sue the promisee for damages.

Answer: (A)

When a contract is made with the intention of benefiting a third party, that intended beneficiary has the right to enforce the contract by suing the person who promised to perform—the promisor. The promisor is legally obligated to perform for the beneficiary, not just for the promisee, so the beneficiary can compel performance or seek damages directly from the promisor. The idea that the beneficiary must sue the promisee or has no rights until performance is inaccurate; the beneficiary’s rights vest from the contract’s formation if there’s an express or clear intent to benefit them.