Donee Beneficiary Law and Legal Definition

A donee beneficiary is one to whom the promisee intends to make a gift of the performance by the promisor.

In construing third party contracts, third parties are classified as donee beneficiaries and creditor beneficiaries. If the performance promised by a defendant will, when rendered, come to the third person as a pure donation, he is a donee beneficiary. [Breaux v. Banker, 107 S.W.2d 382 (Tex. Civ. App. 1937)].

Thus, a donee beneficiary is a third person designated to receive the benefit of performance by one of two contracting parties under the terms of the agreement with the other, who is a stranger to the consideration and is to receive the benefit of performance as a pure donation by the promisee.