donee beneficiary

A donee beneficiary is a third party that benefits from a contract made by others, such as a child named in a parent's life insurance policy. The beneficiary can enforce the contract even without providing consideration. Their rights arise once the contract is formed, and any changes may require their approval. Unlike other third-party beneficiaries, their rights do not depend on awareness of the agreement.

[Last reviewed in July of 2025 by the Wex Definitions Team] 

Keywords

• contract law

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