Definition of Donee beneficiary:
The donee beneficiary’s relationship to the parties in the contract distinguishes them from other types of third-party beneficiaries. Namely, a donee beneficiary’s claim to benefit from the contract amounts to a gift from one of the contractual parties. As with other situations involving third-party beneficiaries, donee beneficiaries have the legal right to demand benefits promised to them once their rights to the contract have vested.
An individual who will receive some sort of contract related benefit even though that person was not considered to be an actual party in that contract.
A donee beneficiary receives the benefit of a contract between two other parties as a gift from one of the parties to the contract. While donee beneficiaries stand to benefit from the fulfillment of a contract, they are not technically party to the contract.
Meaning of Donee beneficiary & Donee beneficiary Definition