What is a credit beneficiary?

Question

What is a credit beneficiary?

Answer 1

In contract law, two parties (A and B) can make an agreement that is indented to benefit a third party (C). That third party is an intended beneficiary.

If one of the parties owes a debt to the beneficiary, then that third party would be a creditor beneficiary of the agreement.

Otherwise, if one or both parties are just giving C a gift, then the term would be donee beneficiary.