Wyoming MacHinery Co. v. United States Fidelity & Guaranty Co.

The courts customarily resolve the issue here presented on the basis of one of two rationales: (1) the “promise to pay” rationale, and (2) the “intention to benefit” rationale. The discussion by the court sometimes includes both rationales, but the determination usually turns on only one of them. The majority opinion does so here. It discusses the “intention to benefit” rationale, but resolves the matter on the “promise to pay” rationale as set forth in §§ 165 and 166 of the Restatement of the Law of Security.

I believe the “intention to benefit” rationale is the most logical and the most…