Question

Rice contracted with Locke to build an oil refinery for Locke. The contract provided that Rice was to use United Pipe Fittings. Rice did not do so. United learned of the contract and, anticipating the order, manufactured additional fittings. United sued Locke and Rice. United is:

A. entitled to recover from Rice only, because Rice breached the contract.

B. entitled to recover from either Locke or Rice because it detrimentally relied on the contract.

C. not entitled to recover because it is a donee beneficiary.

D. not entitled to recover because it is an incidental beneficiary.

Answer

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