A ___________ beneficiary is a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt.

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03-08-2022
Business

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A ___________ beneficiary is a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-18T23:04:07-04:00

A creditor beneficiary is a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt

A creditor beneficiary may be defined as the beneficiary who is being owed or being believed to be owed with a legal obligation by a promisee which is provided upon a promisor's execution of his or her portion of a contract or agreement.

"Creditor beneficiary" is a term which refers to a legal entity that will benefit intentionally from an agreement which has been put in place to satisfy or reduce a debt.

A creditor beneficiary is a special type of third-party beneficiary. Creditor beneficiaries are not active parties in the execution of the agreement which they are to benefit from.

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