CH 13 - Third Party Rights and Discharge

Question 0

ASSIGNOR

Answer 0

Party that transfer rights.

Question 1

ASSIGNMENT

Answer 1

Transfer of contract rights.

Question 2

ASSIGNEE

Answer 2

Party receiving the rights.

Question 3

DELEGATION

Answer 3

Transfer of contract duties (More risky, more dangerous)

Question 4

BONA FIDE PURCHASER (BFP)

Answer 4

Person who has purchased an asset for a stated value

Question 5

DELEGATOR

Answer 5

Party who transfers the duties / obligations

Question 6

DELEGATEE

Answer 6

Party who receive the duties / obligations

Question 7

THIRD PARTY CREDITOR BENEFICIARY (3PCB)

Answer 7

Stand to a benefit due to a debt owed.
Rights starts when you discover the benefit.
You become 3PCB when an assignment.

Question 8

THIRD PARTY DONEE BENEFICIARY

Answer 8

Except gift intent.

Rights starts when discover the benefit ($) + change position

Question 9

INCIDENTAL BENEFICIARY

Answer 9

MORON!!!
No rights at all.
Ex. Peruvian restaurant next to Home Depot

Question 10

CONDITION

Answer 10

Event that creates/ ends a contract rights + duties

Question 11

CONDITION PRECEDENT

Answer 11

Condition in a contract that must be met before.

Question 12

CONDITION CONCURRENT

Answer 12

Conditions that must occur or be performed at the same time, mutually dependent.

Question 13

CONDITION SUBSEQUENT

Answer 13

Condition that if occurs terminates the contract

Question 14

SUBSTANTIAL PERFORMANCE

Answer 14

Close enough to contract purpose (Construction industry)

Question 15

OBJECTIVE SATISFACTION CONDITIONS

Answer 15

Facts, experts, technical. High quality standard

Question 16

SUBJECTIVE SATISFACTION CONDITIONS

Answer 16

Based on taste + opinion

Question 17

BREACH

Answer 17

Breaking a contract

Question 18

MATERIAL BREACH

Answer 18

Major and significant. Too bad that you don’t even have to pay for it.

Question 19

TRIVIAL BREACH

Answer 19

Minor, Insignificant.

Ex. Crayola Crayon CEO House

Question 20

ANTICIPATORY REPUDIATION/ BREACH

Answer 20

Executory contract = Unfinished
One side either can’t or won’t finish
Another side can 1) Sue when due, 2) Sue Now, OR 3) Discussion - Type of negotiation

Question 21

NOVATION

Answer 21

Substitution, prior agreement, of a new contract for an old one, with the rights under the old one being terminated.

Question 22

OBJECTIVE IMPOSSIBILITY

Answer 22

Nobody can do it. 5 min round trip to California.

Question 23

SUBJECTIVE IMPOSSIBILITY

Answer 23

You just don’t want to do it.

Question 24

COMMERCIAL IMPRACTIBILITY

Answer 24

Unexpected event makes performance an unreasonable commercial hardship.
Ex. Panama Canal Case

Question 25

FRUSTRATION OF PURPOSE

Answer 25

Unexpected events makes achieving the contract purpose unlikely/ hardship/ impossible.
Ex. Coronation Case