The conventional pattern for those that were dedicated pattern followers would have been for James to give his own name to his third son. The second son getting the mother's father's name, ie: James' wife's father.What is particularly interesting about the transcription error you identified is that (a) the mistake is round the wrong way - it is much more common for the father's forename to be duplicated, and (b) it appears that the father gave his name to his second son, not his first son, which hints that his own father was called Richard. However it may be that there was an earlier James.
If the family were pattern followers it would suggest that James came from either of his grandfathers (assuming James was a first or second son).