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C is corrent because a third-party beneficiary contract is present when the contracting parties enter into an agreement intended to benefit a third party. Security Bank is a third-party creditor beneficiary because Quick is contracting with Sand, the debtor, to pay a debt owed to Security, the creditor.
A is incorrect because Sand and Quick Corp. entered into the agreement with the intention to benefit Security. Consequently, Security is a creditor beneficiary.
B is incorrect because an incidental beneficiary obtains no rights, but merely an unintended benefit from the two contracting parties.
D is incorrect because a donee beneficiary is one upon whom the contracting parties intended to confer a gift, not one, such as Security, to whom a debt is owed.