A donee beneficiary is a person who is intended to receive a gift or benefit from a contract between two other parties. In this context, one party (the promisee) arranges for the other party (the promisor) to provide a benefit to the donee beneficiary. The donee beneficiary does not provide anything in return for this benefit; it is considered a pure donation.
Donee beneficiaries are commonly referenced in contract law, particularly in cases involving third-party beneficiaries. This term is relevant in civil law contexts, such as wills, trusts, and contracts, where one party intends to confer a benefit on a third party. Users can manage some aspects of these agreements using legal templates from US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A parent purchases a life insurance policy and names their child as the beneficiary. In this case, the child is a donee beneficiary because they will receive the insurance payout without providing anything in return.
Example 2: A company agrees to donate a certain amount of money to a charity as part of a contract with another business. The charity is a donee beneficiary of this agreement. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Description |
|---|---|
| California | Recognizes donee beneficiaries in various contracts, including insurance policies. |
| Texas | Similar to California, donee beneficiaries can be named in contracts, with specific rules governing their rights. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Creditor Beneficiary | A third party who benefits from a contract because they are owed a debt. | Unlike donee beneficiaries, creditor beneficiaries have a right to enforce the contract. |
| Incidental Beneficiary | A third party who may benefit from a contract but was not intended to receive a benefit. | Incidental beneficiaries do not have enforceable rights under the contract. |
If you believe you are a donee beneficiary or are involved in a contract that includes one, it is advisable to review the contract terms carefully. Consider consulting a legal professional for advice specific to your situation. Additionally, you can explore US Legal Forms for templates that may help you navigate these agreements effectively.
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It depends on the intent of the promisee. If the promisee intended to confer rights upon the donee, they may be able to enforce the contract.