Brief Fact Summary. As part of a divorce agreement, Party 1 agreed not to reduce the "quality or quantify of the children's interests in his estate". In a will executed on the same day as the agreement, each child was granted about 30% of Party 1's estate.
Synopsis of Rule of Law. "A promisee of a contract for the benefit of a third party donee has a sufficient interest in the enforcement of the promise to entitle him to sue for damages."
The general rule is that a right of action founded upon a contract survives the person entitled in his lifetime to sue, so that the right passes upon his death to his personal representative.
View Full Point of LawIssue. Does a "promisee of a contract for the benefit of a third party donee ha[ve] a sufficient interest in the enforcement of the promise to entitle him to sue for damages?"
Held. Yes. The court relying on the Restatement observed "[a] promisee of a contract for the benefit of a third party donee has a sufficient interest in the enforcement of the promise to entitle him to sue for damages." Additionally, "[h]e may also invoke the aid of a court of equity, for the general reason that his remedy at law is inadequate, and he should not be denied an effective means of compelling fulfillment of a promise that he bought and paid for."
Discussion. A third-party beneficiary to a contract has the right to sue for damages, or if damages cannot compensate for the harm, bring and action for equitable relief.