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John is the beneficiary of a life insurance policy. after receiving the proceeds from the insurance...

John is the beneficiary of a life insurance policy. after receiving the proceeds from the insurance policy, john goes to a casino to gamble. then, he eats at a pizza place near the casino. Identify the intended beneficiary and the incidental beneficiary.

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Answer #1

The intended beneficiary in this question is John. It is because he has been benefitted by the execution of the contract. He has also been explicitly named in the terms of the life insurance policy as one that is intended to receive the benefit which is associated with executing the contract and that is the reason he received the proceeds from the insurance policy.

The incidental beneficiaries are the casino and the pizza place. It is because incidental beneficiaries are those parties that are potentially benefitted from a contract's execution even though it was not the intention of any of the contract's involved parties. In this case, both John and the insurance company had no intention of benefitting the casino and the pizza place but after the execution of the contract between the two, Casino and the pizza place were benefitted.

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