Who is an intended beneficiary in a contract?

• A. The promisee.
• B. The person to whom the promisor will pay directly to relieve the promisee from a debt.
• C. A third party who might benefit.
• D. The promisor.

Answer: (B)

An intended beneficiary is someone not part of the contract who is the clear purpose of the agreement and who has the right to enforce it. In a creditor-beneficiary setup, one party promises to pay a debt directly to the person who is owed money, thereby relieving the promisee of the obligation. That third party—the one being paid to settle the debt—was intended to benefit from the contract, so they can sue to enforce the promise if payment isn’t made. The promisee and the promisor are the actual contract parties, not beneficiaries, and a third party who benefits only incidentally wouldn’t have enforcement rights. Therefore, the person to whom the promisor will pay directly to relieve the promisee from a debt is the intended beneficiary.