To begin to manufacture the VuYu, Bright Lights buys equipment from Crest Labs, Inc. Because Bright Lights

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To begin to manufacture the VuYu, Bright Lights buys equipment from Crest Labs, Inc. Because Bright Lights does not have the funds to finance the purchase, Crest grants the buyer credit in exchange for monthly payments of the amount owed. Later, the owners of Bright Lights sell the firm to Playback, LLC, which agrees in their contract to make the remaining payments to Crest.

If Playback fails to make the payments, can Crest sue Playback directly? Yes. An ______________ beneficiary can sue the promisor directly for breach of a contract made for the benefit of the ______________. The contract between Bright Lights and Playback includes a provision for the continuation of payments to Crest. This provision is clearly for the benefit of ______________.

Thus, Crest can sue Playback directly to enforce the contract and obtain payment on the amount owed for the equipment.

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Business Law Text And Exercises

ISBN: 9780357717417

10th Edition

Authors: Roger LeRoy Miller, William E. Hollowell

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