CH 16 - Third Party Rights

Question 1

Assignments

Answer 1

transfer of contractual rights to a third party

Question 2

Delegations

Answer 2

transfer of contractual duties to a third party

Question 3

Rights Cannot be assigned:

Answer 3

when a contract is personal in nature

when an assignment will significantly change the risk or duties of the obligor

when the contract prohibits assignment

Question 4

Assignment of all rights

Answer 4

assignment + delegation

Question 5

notice of assignment

Answer 5

if the obligee (assignor) gives rights to the assignee then it is the assignee’s job to let the obligor (original member of the contract) know that they are the new member

Question 6

duties that cannot be delegated:

Answer 6

when the duties are personal in nature

when the contract prohibits delegation

when performance by a third party will vary materially from that expected by obligee

Question 7

third party beneficiaries

Answer 7

person who receives the benefits of the contract directly; third party involved in third party beneficiary contracts

Question 8

third party beneficiary contracts

Answer 8

when the two people who originally entered the contract determined at the time of the contract that the contract performance would directly benefit a third person

Question 9

intended vs incidental beneficiaries

Answer 9

intended: when third party is intended to receive direct benefits, have right to sue promisor directly for breach of contract
incidental: third party benefits but contract was not formed for third party benefit (cannot sue)