Third Party Rights

  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.

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