The term creditor beneficiary refers to an entity that intentionally benefits from an agreement that extinguishes or reduces debt. Creditor beneficiaries are a subset of third-party beneficiaries, in that they are a non-party to the agreement.
A creditor beneficiary is a third-party that receives an intended benefit that satisfies a debt. This type of agreement names a number of parties, including:
If the promisor does not fulfill their duty to pay the creditor, the creditor has the legal right to sue the promisor, and will likely prevail. The debtor / promisee also has the right to sue the promisor and force them to fulfill their duty to pay the creditor.