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C is corrent. Banner’s son is a donee beneficiary under this contract. This is so because he was an intended beneficiary under the contract and the intent was to make a gift by Banner to his son. In such a case, the donee beneficiary can bring an action against the promisor, Gray, and not against Banner who was making a gift. Note that Banner could have sued Gray since s/he was a party to the contract.
A is incorrect because the son, a donee beneficiary, can maintain an action only against Gray, the promissor, and cannot maintain an action against Banner who was simply making a gift.
B is incorrect because the son, as a donee beneficiary, cannot win against the promisee who was simply making a gift.
D is incorrect because the son as a donee beneficiary can maintain an action only against Gray, the promissor