Written by attorneys · grounded in primary & secondary sources — see below
The person to whom a promise is made. The promisee receives the manifestation of intention to act or refrain from acting and is the party entitled to enforce the commitment when consideration or another basis for enforcement exists.
Sources & Authorities
How it applies
Common Examples
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Third-Party Benefit Identification
Philip Powell promises to pay a supplier for goods delivered to Pioneer Energy. Pioneer Energy receives the goods and is identified as the party other than the promisee who benefits from the performance. The supplier therefore treats Pioneer Energy as a beneficiary rather than the promisee.
Transferee Obligation Trigger
Phoenix Technologies leases property to Pablo Perez and later transfers the leasehold to Platinum Partners. The lease contains an express maintenance promise that touches and concerns the land. Platinum Partners steps into the position of promisee and becomes obligated to perform because the transfer creates privity of estate with the landlord.
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Restatements
Casebooks
Study Supplements
Dictionaries
Benefit Running Without Privity
Pearl Porter sells land to Priya Prasad subject to a covenant restricting industrial use. The covenant benefits the retained parcel owned by Peter Park. Peter Park remains the promisee entitled to enforce the restriction even though no direct privity exists with the current owner of the burdened parcel.
Unenforceable Power Contract
Pinnacle Holdings promises to exercise a future power of appointment in favor of Phuong Pham. The power is not presently exercisable. Phuong Pham as promisee cannot compel performance or recover damages but may obtain restitution of any value given in exchange for the promise.
Noncompetition Restraint Review
Pioneer Energy sells its business to Pinnacle Holdings and promises not to compete. The geographic scope exceeds what is needed to protect Pinnacle Holdings as promisee. The court therefore refuses to enforce the restraint because it is greater than necessary to safeguard the promisee's legitimate interest.
Benefit Running With Transfer
Phoenix Technologies leases property and promises to maintain a shared driveway. The lease is later assigned to Platinum Partners. The promisor and promisee intended the maintenance benefit to run with the transferred interest. Platinum Partners therefore receives the benefit as the new promisee in privity of estate.
Common questions
Frequently Asked
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Who qualifies as the promisee when a contract benefits a third party?+
The promisee is the person to whom the promisor addresses the manifestation of intention. A third party who receives performance is a beneficiary, not the promisee, unless the manifestation is directed to that party.
Supporting sources
Does the promisee remain obligated after transferring a leasehold interest?+
The original promisee continues to be obligated after transfer if the promise touches and concerns the land and the parties intended the burden to run. The transferee assumes the obligation only when additional conditions such as privity of estate are met.
Supporting sources
What remedy is available to a promisee when a contract to exercise a non-present power of appointment is unenforceable?+
The promisee cannot obtain specific performance or damages. The promisee may still recover restitution of any value given in exchange for the promise.
Supporting sources
How does the promisee's legitimate interest affect enforcement of a noncompetition covenant?+
A restraint is unenforceable if it exceeds what is needed to protect the promisee's legitimate interest or if the promisee's need is outweighed by hardship to the promisor and injury to the public.
Supporting sources
501 U.S. 663 (1991)Torts
…to the doctrine, well-established in this state, a promise expected or reasonably expected to induce definite action by the promisee that does induce action is binding if injustice can be avoided only by enforcing the promise.[^maj-5] In our case we have, without dispute, the reporters' unambiguous promise to treat…