Emily contracts with a software development firm to create a custom application designed to benefit her business partner, David. The contract explicitly states that the application will include features tailored to David’s specific needs. David, who is not a party to the contract, believes he has the right to enforce the contract terms directly against the software firm. What best describes David’s status regarding the contract?
David is an incidental beneficiary and lacks rights to enforce the contract.
David is not able to enforce the contract because he was not originally a party to it.
David needs to join as a party to the contract to have enforceable rights.
David is an intended third-party beneficiary and can enforce the contract.
David is an intended third-party beneficiary because the contract explicitly benefits him, allowing him to enforce the contract. An intended beneficiary has enforceable rights, unlike incidental beneficiaries who lack such rights.
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What is an intended third-party beneficiary?
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What is the difference between an intended and an incidental beneficiary?
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Why can't an incidental beneficiary enforce a contract?