13:59
to be fair to them, many people don't know that
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LSDefine
Simple English definitions for legal terms
creditor beneficiary
Read a random definition: idoneum se facere; idoneare se
A quick definition of creditor beneficiary:
A creditor beneficiary is someone who is owed money by one party, but that debt is to be paid by another party as part of a contract. For example, if John owes money to Jane, but Bob agrees to pay off John's debt to Jane as part of a contract, then Jane is a creditor beneficiary.
A more thorough explanation:
A creditor beneficiary is a type of third-party beneficiary in a contract who is owed a debt that is to be paid by another party's performance under the contract. In simpler terms, it means that someone who is owed money can benefit from a contract between two other parties.
Let's say that John owes Jane $1,000, but he doesn't have the money to pay her back. However, John has a contract with Bob to paint his house for $1,000. In this case, Jane is a creditor beneficiary because she can benefit from the contract between John and Bob. When Bob completes the painting job, Jane can receive the $1,000 that John owes her.
This example illustrates how a creditor beneficiary can benefit from a contract between two other parties. It shows that a third party can have a legal right to receive payment from a contract even though they are not a party to the contract.