Question

2. Greensward Landscaping enters into a contract with Kent to landscape Hillview Country Club's golf course, using Intown Nursery to supply trees and shrubbery. Jonas owns a lot next to Hillview Country Club's golf course that will benefit from the improved landscaping. The landscaping is a gift from Kent, a wealthy club member, to Hillview.

What type of beneficiary is Hillview?*

What type of beneficiary is Jonas?*

What type of beneficiary is Intown Nursery?*

If Greensward Landscaping refuses to do the job, who can enforce the contract?*

Answer 1

1. Hillview is an intended, donee beneficiary. Greensward and Kent entered into the contract with the express purpose of benefitting Hillview.

2. Jonas is an Incidental beneficiary. Jona's Property value will go up once Hillview's property is improved, but that is not the intent of the parties to the contract.

3. Intown Nursery is also an incidental beneficiary because it will also benefit from the contract between Greensward and Kent, but that is not the intent of either party. If Greensward refuses to do the job, Kent or Hillview can enforce the contract against the landscaper.

In Hillview's situation, when a contract is made for the express purpose of giving a gift to the third party, the third-party (Hillview, the donee beneficiary) can sue the promissory (Greensward) directly to enforce the promise. Kent can enforce the contract, of course, because he is a party to it.

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