Also known as: primary beneficiaries
Written by attorneys — see sources below.
2 senses
A future interest holder designated in a donative instrument whose entitlement is subject to an unrestricted condition of survival of the distribution date when the instrument expresses alternative future interests only in the disjunctive. The condition extinguishes the interest if the holder fails to survive the distribution date.
A future interest holder designated in a donative instrument whose entitlement is subject to an unrestricted condition of survival of the distribution date when the instrument expresses alternative future interests only in the disjunctive. The condition extinguishes the interest if the holder fails to survive the distribution date.
An intended third party for whose primary benefit the parties to a contract have entered into the agreement. That party may enforce the contract even though not in privity with the promisor.
An intended third party for whose primary benefit the parties to a contract have entered into the agreement. That party may enforce the contract even though not in privity with the promisor.
Each sense below has its own examples, sources, and questions.
Priscilla Parks devised her estate in trust to pay income to Paul Peterson for life, then to distribute the principal to Piper Patel or Piper's issue. Piper died before Paul. Because the remainder was expressed only in the disjunctive, Piper's interest as primary beneficiary was subject to an unrestricted condition of survival. Piper's estate therefore took nothing, and the principal passed to Piper's surviving issue.
3 common questions
The primary beneficiary's interest requires survival when alternative future interests are expressed only in the disjunctive and nothing in the language or circumstances shows a contrary intention. Failure to survive extinguishes the interest entirely.
Supporting sources
Disjunctive language creates an unrestricted condition of survival that extinguishes the primary interest if the beneficiary fails to survive the distribution date. Supplanting language creates a restricted condition that extinguishes the primary interest only if the substitutionary beneficiary is also entitled to take.
Supporting sources
Under the disjunctive form the primary interest is extinguished regardless of whether a substitutionary beneficiary exists. The property then passes through the primary beneficiary's estate or by other default rules.
Supporting sources
Premier Manufacturing contracted with Paragon Construction to build a facility on land owned by Patriot Insurance. The contract expressly required Paragon to complete the work to Patriot's satisfaction. When Paragon breached, Patriot sued to enforce the agreement. Patriot qualified as the primary beneficiary because the contract was made expressly for its benefit rather than merely incidentally.
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View case1 common questions
No. A third party need not be the sole beneficiary. The contract need only be made expressly for the third party's benefit rather than merely incidentally benefiting that party.
Supporting sources