Bill promises to pay Amy $5,000 for a purebred, champion bearded collie named Sir Josh. When Bill discovers that he does not have this amount, Larry promises Bill that he will pay Amy the $5,000. In this situation, Amy is

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Business

Julianne Garcia

29 May, 01:40

Bill promises to pay Amy $5,000 for a purebred, champion bearded collie named Sir Josh. When Bill discovers that he does not have this amount, Larry promises Bill that he will pay Amy the $5,000. In this situation, Amy is

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Dahlia Barker · Answer 1

A creditor beneficiary.

Explanation:

A creditor beneficiary is a nonparty to a contract who receives the benefit when a promise is made to satisfy a legal duty. For example, suppose that a debtor owed a creditor $500. The debtor lends $500 to a third person, who promises to use the money to pay the debtor's debt.