A more thorough explanation:

Donee beneficiary refers to a third party who benefits from a contract between two other parties, even though they are not a party to the contract. This means that the donee beneficiary receives something of value from the contract, such as money or property.

For example, if a parent buys a life insurance policy and names their child as the beneficiary, the child is a donee beneficiary. The child did not sign the contract, but they will receive the proceeds from the policy if the parent dies.

A donee beneficiary has the legal right to enforce the terms of the contract against the parties who signed it, even though they did not provide any consideration (i.e. they did not give anything in exchange for the contract). This means that if the parties do not fulfill their obligations under the contract, the donee beneficiary can take legal action to make them do so.

It is important to note that the rights of a donee beneficiary arise as soon as the contract is made, even if the beneficiary is not aware of the contract. Additionally, if the parties to the contract want to change the terms of the contract, they may need the approval of the donee beneficiary.

Overall, a donee beneficiary is a third party who benefits from a contract between two other parties, and has legal rights to enforce the terms of the contract.