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Business Law > Ch12 Third Parties and Contracts > Flashcards

Ch12 Third Parties and Contracts Flashcards

1
Q

Person not party to contract but whom parties intended to benefit.

A

Involving a Third Party: Third-Party Beneficiary

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2
Q

Third-party can enforce contract against promisor.

A

Involving a Third Party: Third-Party Beneficiary

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3
Q

Termination of a new contract and substitution of a new one with same terms but a new party.

A

Involving a Third Party: Novation

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4
Q

New obligor is solely liable.

A

Involving a Third Party: Novation

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5
Q

Conveyance of rights in a contract to a person not a party.

A

Involving a Third Party: Assignment

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6
Q

Assignment of rights depends on their nature and terms of the contract.

A

Involving a Third Party: Assignment

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7
Q

Transfer of duties without rights.

A

Involving a Third Party: Delegation

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8
Q

Delegated party is fully liable.

A

Involving a Third Party: Delegation

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9
Q

Assignment and delegation can be specified in the contract.

A

Involving a Third Party: Delegation

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10
Q

No noticed needed for assignment to be effective.

A

Notice of an Assignment.

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11
Q

Generally, law gives priority in the order the assignments were made.

A

Notice of an Assignment.

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12
Q

Made by either by operation of law or act of parties.

A

Form of the Assignment

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13
Q

If original contract is written, assignment must be written.

A

Form of the Assignment

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14
Q

Transfers all rights, title, or interested held by assignor to assignee.

A

Effect on Assignment

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15
Q

The assignor is the true owner of the right.

A

Warranties of the Assignor

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16
Q

The right is valid and subsisting at the time the assignment is made.

A

Warranties of the Assignor

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17
Q

There are no defenses available to the debtor which have not been disclosed to the assignee.

A

Warranties of the Assignor

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18
Q

Contract obligating or entitling two or more people together to performance.

A

Joint Contracts

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19
Q

Two or more people individually agree to perform obligation.

A

Several Contracts

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20
Q

Two or more people bound jointly and individually.

A

Joint and Several Contracts

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21
Q

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.

A

Several

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22
Q

This type of contract obligates or entitles two or more people together to performance.

A

Joint

23
Q

Even if a contract may be assigned, there may be some _________ requirements that must be met to make sure the assignment is effective.

A

Technical

24
Q

A person to whom the promisee owes obligation, which is discharged if the promisor pays. (Two words)

A

Creditor Beneficiary

25
Q

This is the transfer of duties.

A

Delegation

26
Q

A novation does not need to be in writing, nor must it be ____________.

A

Expressed

27
Q

When one assigns rights under a contract to an assignee for value, the assignor makes how many implied warranties?

A

Three

28
Q

A contract creates both rights and ____________.

A

Obligations

29
Q

This is the termination of a contract and substitution of a new one with the same terms but a new party.

A

Novation

30
Q

The party making the assignment.

A

Assignor

31
Q

This type of beneficiary is a person who unintentionally benefits from the performance of a contract.

A

Incidental

32
Q

The one to whom the right is transferred.

A

Assignee

33
Q

This type of beneficiary is a third-party beneficiary for whom performance is a gift.

A

Donee

34
Q

This means one party conveys the rights in a contract to another who is not a party to the original undertaking.

A

Assignment

35
Q

A person not party to the contract but whom parties intended to benefit. (Three words)

A

Third Party Beneficiary

36
Q

Person to whom contract right is assigned

A

Assignor

37
Q

Conveyance of rights in a contract to a person not a party

A

Assignment

38
Q

Person making an assignment

A

Assignor

39
Q

A contract involves rights but not necessarily obligations.

A

False

40
Q

If a person incidentally benefits by the performance of a contract, suit for breach or for performance will be successful.

A

False

41
Q

Novation can be implied from the parties’ actions.

A

True

42
Q

An assignment means that one party conveys rights in a contract to another who is not a party to the original deal.

A

True

43
Q

Whether rights may be assigned depends upon their nature and the terms of the contract.

A

True

44
Q

Notice must be given to the other party in order to make the assignment effective between the assignor and the assignee.

A

False

45
Q

A delegating party remains fully liable under a contract.

A

True

46
Q

If Rochon and Bailey both sign a contract “I promise…”, that binds them jointly and severally.

A

True

47
Q

A delegation relieves the delegating party of all liability under the contract.

A

False

48
Q

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.

A

Creditor

49
Q

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.

A

Donee

50
Q

The party making the assignment is the ________; the one to whom the right is transferred is the ________.

A

Assignor, assignee

51
Q

When an assignment is made by acts of the parties, it:

A

may be either written or oral.

52
Q

_______ __ ___ ______ include the right is valid and existing at the time the assignment is made.

A

Warranties of the assignor

53
Q

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?

A

the intention of the parties

Business Law (13 decks)

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