Alexander has been accepted as a freshman at a college two hundred miles from hi

Question

Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealthy uncle, Michael, decides to give Alexander a car for Christmas. In November, Michael enters into a contract with Jackson Auto Sales to purchase a new car for $18,000 to be delivered to Alexander just before the Christmas holidays, in mid-December. The title to the car is to be in Alexander's name. Michael pays the full purchase price, calls Alexander and tells him about the gift, and takes off for a six- month vacation in Europe. Is Alexander an intended third party beneficiary of the contract between Michael and Jackson Auto Sales? Suppose that Jackson Auto Sales never ces ations delivers the car to Alexander. Does Alexander have the right to sue Jackson Auto Sales for breaching its contract with Michael? Use appropriate points of law. Explain fully. inking Tutoring t W. ruff CBUS-HW 22 3 5 6 8

Explanation / Answer

Yes, Alexander is an intended beneficiary of the contract between Jackson Auto sales and Michael. Michael has entered in contract with Jackson Auto sales to purchase and gift the car to Alexander just before the Christmas holidays in mid December and paid the full purchase price. Michael and Jackson Auto sales have agreed through the contract that the contract performance should directly benefit the third party, Alexander. Hence Alexander is the intended beneficiary of the contract.

As the intended beneficiary of the contract, Alexander has the legal rights and can sue the promisor, Jackson Auto sales directly for the breach of contract if they do not deliver the car as per the contract. The type of indented beneficiary in this case is donee beneficiary where a contract is made for the express purpose of giving a gift to a third party. Donee beneficiary can sue the promisor directly to enforce the promise. Jackson Auto sales made the promise to Michael that would benefit Alexander, which makes Jackson Auto sales promisor and hence Alexander can directly sue Jackson Auto sales for enforcing the promise.

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