Third Parties as Beneficiaries of Contractors\u27 Surety Bonds

The American Law Institute has tentatively adopted the two following general rules: A gift promise in a contract creates a duty of the promisor to the donee beneficiary to perform the promise. This duty can be enforced by the donee beneficiary for his own benefit. A promise to discharge the promisee\u27s duty [to another person] creates a duty of the promisor to the creditor beneficiary to perform the promise