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Question
Fact Pattern 16-1AAA Properties, Inc., contracts with Best Builders, Inc., to construct an office building. AAA agrees to obtain insurance to cover the project, after which the parties waive their rights against the subcontractors. AAA obtains the policy from City Insurance Company. When the new building is destroyed in a storm, City pays AAA and then files a suit against the subcontractors.
Refer to Fact Pattern 16-1. Delta Corporation is the owner of an adjacent building, the value of which increased when AAA's new offices were built. City files a suit against Delta, claiming that Delta's negligence contributed to the collapse of AAA's new building. Under the reasoning of the court in Case 16.3, Midwestern Indemnity Co. v. Systems Builders, Inc., in relation to the waiver in AAA's contract with Best, Delta would be
a. an incidental beneficiary and thus not liable to City.
b. an incidental beneficiary and thus possibly liable to City.
c. an intended beneficiary and thus not liable to City.
d. an intended beneficiary and thus possibly liable to City.
Answer
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Fact Pattern 41-1
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Fact Pattern 41-1
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