Ch 17: Third Party Rights

Question 1

assignment

Answer 1

transfer of contractual rights

Question 2

2 exceptions to privity of contact

Answer 2

1, Assignment and delegation
2. intended beneficiaries

Question 3

assignor

Answer 3

person who has assigned the rights in the contract to a 3rd party

Question 4

assignee

Answer 4

person who has received rights, now has standing to sue

Question 5

rights that cannot be assigned

Answer 5

a statute can prohibit it or a contract can

Question 6

delegation

Answer 6

transfer of contractual duties

Question 7

2 rules to a delegation

Answer 7

the delegatee must agree to the delegation
if the delegatee does not fulfill fulfill the obligation then the delegator must still fulfill the obligation

Question 8

relationship between the delegatee/assignee and the delegator/assignor

Answer 8

the delegatee usually owes the delegator

Question 9

duties that cannot be delegated

Answer 9

when the duties are personal in nature (where duties are performed by someone that can only provide those duties - a personal portrait,)and when the performance of a third party will vary materially from that expected by the obligee (a 30 year old brick mason can’t delegate to an intern)

Question 10

an assignment of all rights in a contract

Answer 10

both an assignment and delegation

Question 11

intended beneficiaries

Answer 11

the spouse that benefits in a life insurance policy now has rights under the contract

Question 12

incidental beneficiary

Answer 12

people that benefit from a contract that aren’t intended to benefit (tax authorities, land developer benefitting from a school being built across the street)