[Anonymous]

How do you get better at third party rights? Whenever I see a question on it, it just makes my head hurt. Example:

Ferco, Inc., claims to be a creditor beneficiary of a contract between Bell and Allied Industries, Inc. Allied is indebted to Ferco. The contract between Bell and Allied provides that Bell is to purchase certain goods from Allied and pay the purchase price directly to Ferco until Allied’s obligation is satisfied. Without justification, Bell failed to pay Ferco and Ferco sued Bell. Ferco will

A. Not prevail, because Ferco lacked privity of contract with either Bell or Allied.

B. Not prevail, because Ferco did not give any consideration to Bell.

C. Prevail, because Ferco was an intended creditor beneficiary of the contract between Allied and Bell.

D. Prevail, provided Ferco was aware of the contract between Bell and Allied at the time the contract was entered into.

C: A person is an intended creditor beneficiary when a party to the contract at issue owes the creditor money and the contract at issue was made to satisfy that debt. Ferco can collect as a creditor beneficiary.