Ch12 Third Parties and Contracts Flashcards
Person not party to contract but whom parties intended to benefit.
Involving a Third Party: Third-Party Beneficiary
Third-party can enforce contract against promisor.
Involving a Third Party: Third-Party Beneficiary
Termination of a new contract and substitution of a new one with same terms but a new party.
Involving a Third Party: Novation
New obligor is solely liable.
Involving a Third Party: Novation
Conveyance of rights in a contract to a person not a party.
Involving a Third Party: Assignment
Assignment of rights depends on their nature and terms of the contract.
Involving a Third Party: Assignment
Transfer of duties without rights.
Involving a Third Party: Delegation
Delegated party is fully liable.
Involving a Third Party: Delegation
Assignment and delegation can be specified in the contract.
Involving a Third Party: Delegation
No noticed needed for assignment to be effective.
Notice of an Assignment.
Generally, law gives priority in the order the assignments were made.
Notice of an Assignment.
Made by either by operation of law or act of parties.
Form of the Assignment
If original contract is written, assignment must be written.
Form of the Assignment
Transfers all rights, title, or interested held by assignor to assignee.
Effect on Assignment
The assignor is the true owner of the right.
Warranties of the Assignor
The right is valid and subsisting at the time the assignment is made.
Warranties of the Assignor
There are no defenses available to the debtor which have not been disclosed to the assignee.
Warranties of the Assignor
Contract obligating or entitling two or more people together to performance.
Joint Contracts
Two or more people individually agree to perform obligation.
Several Contracts
Two or more people bound jointly and individually.
Joint and Several Contracts
This type of contract arises when two or more people individually agree to perform the same obligation even though the individual agreements are contained in the same document.
Several
This type of contract obligates or entitles two or more people together to performance.
Joint
Even if a contract may be assigned, there may be some _________ requirements that must be met to make sure the assignment is effective.
Technical
A person to whom the promisee owes obligation, which is discharged if the promisor pays. (Two words)
Creditor Beneficiary
This is the transfer of duties.
Delegation
A novation does not need to be in writing, nor must it be ____________.
Expressed
When one assigns rights under a contract to an assignee for value, the assignor makes how many implied warranties?
Three
A contract creates both rights and ____________.
Obligations
This is the termination of a contract and substitution of a new one with the same terms but a new party.
Novation
The party making the assignment.
Assignor
This type of beneficiary is a person who unintentionally benefits from the performance of a contract.
Incidental
The one to whom the right is transferred.
Assignee
This type of beneficiary is a third-party beneficiary for whom performance is a gift.
Donee
This means one party conveys the rights in a contract to another who is not a party to the original undertaking.
Assignment
A person not party to the contract but whom parties intended to benefit. (Three words)
Third Party Beneficiary
Person to whom contract right is assigned
Assignor
Conveyance of rights in a contract to a person not a party
Assignment
Person making an assignment
Assignor
A contract involves rights but not necessarily obligations.
False
If a person incidentally benefits by the performance of a contract, suit for breach or for performance will be successful.
False
Novation can be implied from the parties’ actions.
True
An assignment means that one party conveys rights in a contract to another who is not a party to the original deal.
True
Whether rights may be assigned depends upon their nature and the terms of the contract.
True
Notice must be given to the other party in order to make the assignment effective between the assignor and the assignee.
False
A delegating party remains fully liable under a contract.
True
If Rochon and Bailey both sign a contract “I promise…”, that binds them jointly and severally.
True
A delegation relieves the delegating party of all liability under the contract.
False
A person to whom the promissee owes an obligation or duty that will be discharged to the extent that the promisor performs the promise is called the ________ beneficiary.
Creditor
A/n ________ beneficiary is one to whom the promisee owes no legal duty but to whom performance is a gift, such as the beneficiary named in a life insurance contract.
Donee
The party making the assignment is the ________; the one to whom the right is transferred is the ________.
Assignor, assignee
When an assignment is made by acts of the parties, it:
may be either written or oral.
_______ __ ___ ______ include the right is valid and existing at the time the assignment is made.
Warranties of the assignor
When two or more persons enter into a contract with someone else, the contract may be joint, several, or joint and several. What determines the type of contract?
the intention of the parties
