Beek’s house was destroyed by fire and claims were filed with the insurance company.

Beek’s house was destroyed by fire and claims were filed with the insurance

company. The insurance company (insurer) hired James to investigate the fire as it

was suspicious about the cause. Subsequently, the insurer denied the claims based on

James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a

third party beneficiary of the James-insurer contract. Is Beek correct? If so what

type of beneficiary is he and why?

Solutions

Expert Solution

Beek was not correct in his claim regarding the third party beneficiary for James-insurer contract. If we refer California Civil Code section 1559 then it clearly says that contracts which involves third party intended beneficiaries has to be made for the third party benefit. In this case James is just an agent for the insurance company who is acting as a third party investigator into the case of week. So James in this case is not representing him in any capacity instead of it he is not representing Beek only working for the insurers.

keosha answered 1 year ago

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