In Cases of Damage to or Loss of Property in Contracts

Multiple Choice

In cases of damage to or loss of property in contracts for the carriage of goods or incomplete or defective performance in building contracts, the courts may apply what is know as the Albazero exception (established in Albacruz v. Albazero (1977) ) where a third party is involved. What does this exception entail?

A) That the promisee can sue the promisor for his own loss arising out of the promisor's failure to confer a benefit on the third party.
B) That the third party can sue the promisor for his failure to confer a benefit on him as was agreed to between the promisee and the promisor.
C) That the promisee can sue the promisor on behalf of the third party for the loss the third party has suffered from the promisor's failure to confer a benefit on him.
D) That the third party can sue the promisor on behalf of the promisee for the loss the promisee has suffered from the promisor's failure to perform his obligations under the contract.