Questions: Donald and Carolyn are owed money from Uris. They tell Uris to give the money to their daughter, Daphne, because she recently got engaged to be married. Which statement is false? Select one: A. Daphne can never sue Uris because this is a gift. B. Daphne cannot sue her parents if Uris fails to pay her. C. Daphne is an intended beneficiary. D. Uris must pay Daphne even though she is not in privity of contract.

The answer is A: Daphne can never sue Uris because this is a gift.

Explanation for each option:

A. Daphne can never sue Uris because this is a gift.

• This statement is false. Even though the money is a gift, Daphne is an intended beneficiary of the contract between her parents and Uris. As an intended beneficiary, she has the right to enforce the contract and sue Uris if he fails to pay her.

B. Daphne cannot sue her parents if Uris fails to pay her.

• This statement is true. Daphne cannot sue her parents because the obligation to pay her lies with Uris, not her parents. Her parents have directed Uris to pay her, making her the intended beneficiary of the contract.

C. Daphne is an intended beneficiary.

• This statement is true. Daphne is an intended beneficiary because her parents specifically directed Uris to pay her the money. This gives her the right to enforce the contract.

D. Uris must pay Daphne even though she is not in privity of contract.

• This statement is true. Although Daphne is not a party to the original contract (not in privity of contract), she is an intended beneficiary. Therefore, Uris is obligated to pay her as directed by Donald and Carolyn.