Who can an obligee sue in a 3rd Party K?

Who can an obligee sue in a 3rd Party K?

• A. The Delegating Party, or the Delegate who gets Consideration
• B. The Third-Party Beneficiary
• C. The Promisee only
• D. The Debtor only

Answer: (A)

When a duty is delegated in a contract, the obligee’s remedy is against the person who originally created the duty and, if the delegate accepts and takes on the obligation for consideration, against the person who actually assumes the duty as well. The delegating party remains liable to the obligee, and the delegate who agrees to perform in exchange for something (consideration) also becomes liable to the obligee. If there’s no consideration, the delegate isn’t normally liable—the original obligor stays on the hook. This is why the best answer points to both the delegating party and the delegate who receives consideration as the ones the obligee can sue. Note that true third-party beneficiary situations involve different rights (the beneficiary enforcing the promise), which is a different setup from a delegated duty.

When a duty is delegated in a contract, the obligee’s remedy is against the person who originally created the duty and, if the delegate accepts and takes on the obligation for consideration, against the person who actually assumes the duty as well. The delegating party remains liable to the obligee, and the delegate who agrees to perform in exchange for something (consideration) also becomes liable to the obligee. If there’s no consideration, the delegate isn’t normally liable—the original obligor stays on the hook. This is why the best answer points to both the delegating party and the delegate who receives consideration as the ones the obligee can sue. Note that true third-party beneficiary situations involve different rights (the beneficiary enforcing the promise), which is a different setup from a delegated duty.