11 Jun Scenario 1 – Third Party Rights
Scenario 1 – Third Party Rights
Bobby was attending college two hundred miles from his home for the fall semester. Bobby’s wealthy aunt, Brenda, decides to give Bobby a car for Christmas. In November, Brenda makes a contract with Walker Ford to purchase a new car for $21,800 to be delivered to Bobby just before the Christmas holidays, in mid- December. The title to the car is to be in Bobby’s name. Brenda pays the full purchase price, calls Bobby and tells him about the gift, and takes off for a three-month vacation in Mexico.
Is Bobby an intended third party beneficiary of the contract between Brenda and Walker Ford?
Suppose that Walker Ford never delivers the car to Bobby. Does Bobby have the right to sue Walker Ford for breaching its contract with Brenda? Explain.