David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agreed to disclose all information about the property on which Sirva "and other prospective buyers may rely in deciding whether and on what terms to purchase the property." The Kincaids contracted with Sirva to buy the house. After the closing, they discovered dampness in the walls, defective and rotten windows, mold, and other undisclosed problems. Can the Kincaids bring an action against the David and Sandra for breach of their contract with Sirva? Why or why not?

Question

17-10-2019
Business

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David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agreed to disclose all information about the property on which Sirva "and other prospective buyers may rely in deciding whether and on what terms to purchase the property." The Kincaids contracted with Sirva to buy the house. After the closing, they discovered dampness in the walls, defective and rotten windows, mold, and other undisclosed problems. Can the Kincaids bring an action against the David and Sandra for breach of their contract with Sirva? Why or why not?

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Answer:

The answer is:

The Kincaids can sue David and Sandra Dess because they can be considered intended beneficiaries of the contract between them and Sirva.

Explanation:

Intended beneficiaries are third parties in a contract that can sue the promisor for breach of contract.

In the contract, David and Sandra agreed to fully disclose all information about the property. Under the terms of the contract, they agreed that Sirva and "other prospective buyers" could rely on their disclosures.