Which type of third-party beneficiary can sue the promissor/obligor directly to enforce the obligation?

A donee beneficiary and a creditor beneficiary are both types of third-party beneficiaries that possess the legal right to sue the promissor (the party who made the promise) directly for enforcement of the obligation.

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the primary purpose of the contract is to confer a benefit upon this third party. For example, if a person takes out a life insurance policy with the intention of naming a friend as the beneficiary, that friend can enforce the contract against the insurer if the policyholder dies.

A creditor beneficiary arises in situations where a contract is established that benefits a third party who is owed a debt by one of the parties to the contract. In this case, the creditor beneficiary has the right to enforce the contract against the promissor, as the contract was intended to benefit them in satisfying an existing obligation.

In both scenarios, the donee and creditor beneficiaries can sue to enforce their right to the benefit promised in the contract. Incidental beneficiaries, on the other hand, do not have the right to sue because they merely happen to benefit from the contract rather than being an intended beneficiary. This distinction emphasizes why both donee and creditor beneficiaries are empowered to take legal action to