Who Is Considered a ''Creditor Beneficiary'' In Texas ?

A person is a creditor beneficiary if the performance under the contract will come to him in satisfaction of a legal duty owed to him by the promisee. See id. This legal duty may be an indebtedness, contractual obligation or other legally enforceable commitment owed to the third party. See id. In this context, a creditor beneficiary may be defined as a third person to whom the bargain-seeking party (the "promisee" or contract party exacting the particular stipulation) has an indebtedness, contractual obligation, or other legally enforceable commitment to the third party, which commitment the bargain-seeker wishes to discharge or protect by stipulating that the bargain-giver (the opposing contract party or "promisor" concerning the particular stipulation) shall deliver a contract performance to the third party. MJR Corp. v. B & B Vending Co., 760 S.W.2d 4, 11 (Tex. App.--Dallas 1988, writ denied). The very essence of the position as so-called "creditor beneficiary" requires not only that the bargain-seeking party intend to confer a benefit upon the third party; he must further intend that the third party have the right to enforce the agreement. See id. at 16. Unless both intents were exhibited on his behalf, the third party remains no more than an incidental beneficiary. See id.