Beneficiary Contracts Flashcards
What’s the difference between an assignment/delegation and a beneficiary contract?
Third party delegation and assignment is a thought you have after the contract is formed. Where beneficiary contracts we already know who C is when we attend the third party beneficiary contract. Both the third party beneficiary contracts are intended.
What is a third party beneficiary donee contract?
Naming someone to receive a gift from another party when you are dead.
Ex) Paying premium to insurance companies. The insurance company promises that when I die, my policy will be paid to the donee
When does donee contract vest/can’t change?
It vests when the promisee dies
What is third party creditor beneficiary contract?
Owing money to begin with so you enter into a new contract to pay the debt
Ex) already an existing contract between A and B. A is the husband and B is the wife. A owes B child support. A gets a job working for C. A tells C “I owe child support, take money out of my check and pay B child support”. A enters into a new contract with C.
A: debtor
B: creditor
What does the creditor contract vest/can’t change?
Creditor contract vests when you receive notice
What is incidental beneficiary contract?
Entering into a “contract” without the other party knowing
Ex) Moreno Valley is having a parade and having it on Lasselle. You decide to have a shop open for customers. Moreno Valley decides to movie it somewhere else. You can’t sue because Moreno Valley was not thinking of you at the moment.
