Who can sue whom in a suit involving beneficiaries, promisees, and promisors?

Let’s break down who can sue whom in a contract involving a beneficiary, promisee, and promisor.

(A) Beneficiary vs. Promisor: The third-party beneficiary, who is meant to receive a benefit from the contract, can sue the promisor if the promise isn’t fulfilled. For example, if Bob promises Amy that he will pay $200 to Sam, and Bob fails to do so, Sam (the beneficiary) can sue Bob (the promisor) to recover the $200 that was promised to him. The key is that the contract was made specifically to benefit Sam, giving him the right to enforce it.

(B) Promisee vs. Promisor: The promisee, who secures the promise, can also sue the promisor if the promise isn’t fulfilled. In the example, Amy (the promisee) can sue Bob (the promisor) if Bob doesn’t pay Sam the $200 as agreed. Amy can take legal action to ensure Bob follows through on the promise he made to benefit Sam.

(C) Donee Beneficiary vs. Promisee: A donee beneficiary, who receives a gift or benefit, generally cannot sue the promisee. If Sam is a donee beneficiary, meaning Amy just arranged the $200 as a gift for him, he cannot sue Amy if Bob doesn’t pay. Sam’s right to recover the money is only against Bob, the promisor, not Amy, the promisee.

(D) Creditor Beneficiary vs. Promisee: A creditor beneficiary, who is receiving a benefit to settle a debt, can sue the promisee only if it involves a pre-existing debt. If Amy owes Sam $200, and Bob promises to pay Sam that amount on Amy’s behalf, Sam can sue Amy if Bob fails to pay. This is because Sam is a creditor beneficiary and has the right to recover on a pre-existing debt.