The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.

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The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.

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Rensselaer Water Company contracted with the city of Rensselaer to provide water to the city for use in homes, public buildings, industry, and fire hydrants. During the term of the contract, a building caught fire. The fire spread to a nearby warehouse and destroyed it and its contents. The water company knew of the fire but failed to supply adequate water pressure at the fire hydrant to extinguish the fire. The warehouse owner sued the water company for failure to fulfill its contract with the city. Can the warehouse owner enforce the contract? Explain.

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Verified Answer

Judgement will go against the warehouse owner as it is a third-party incidental beneficiary.
Warehouse owner cannot enforce the contract as the contract is between the Company W and City R and does not include the other residents that are incidental beneficiaries. Huge amount of used Resource W will also go out of budget at the time of a certain incident.

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