What is a third-party beneficiary for whom performance is intended as a gift?

A donee beneficiary is a third-party beneficiary for whom performance is intended as a gift. In contract law, when one party (the promisor) makes a promise to another party (the promisee) with the intention of benefiting a third party, this third party is considered a beneficiary of the contract. Specifically, a donee beneficiary is someone who is not part of the contract but stands to receive a benefit from the performance of the contract as a gift.

For instance, if A contracts with B to pay $1,000 to C, knowing that the payment is intended as a gift for C, then C is a donee beneficiary. The key aspect of this type of beneficiary is that the intention behind the promise is to confer a benefit on them without requiring anything in return.

In contrast, other types of beneficiaries, such as a creditor beneficiary, are intended to receive a benefit due to an obligation of the promisor to the promisee (such as satisfying a debt). An incidental beneficiary, on the other hand, is someone who may benefit from the contract unintentionally and has no legal right to enforce the contract. A promissory beneficiary isn't a recognized category in standard contract terminology.

Thus, the identification of the donee beneficiary revolves