What is the term for a third party beneficiary who receives a benefit without any legal duty owed to them?

The correct term for a third party beneficiary who receives a benefit without any legal duty owed to them is known as a donee beneficiary. This distinction is important in contract law, where the intention of the parties to benefit someone who is not part of the contract is clarified. A donee beneficiary is someone who receives the benefit as a gift or without any expectation of compensation or obligation, purely because the contracting parties intended to confer that benefit upon them.

In contrast, a creditor beneficiary is involved in a contract primarily to satisfy an existing debt, meaning there is a legal obligation connected to their benefit. An incidental beneficiary, meanwhile, receives a benefit from a contract indirectly but does not have any rights to enforce the contract itself since the benefit was not intended for them specifically. The term "mere beneficiary" is not a formal category recognized in contract law.

Understanding these definitions is crucial for grasping the nuances of contract law and the rights of various types of beneficiaries when interpreting contractual relationships.