Chapter 13

Question 1

The transfer to another of all or part of one’s rights arising under a contract

Answer 1

Assignment

Question 2

A party who transfers his or her rights under a contract to another party

Answer 2

Assignor

Question 3

A party to whom the rights under a contract are transferred, or assigned

Answer 3

Assignee

Question 4

One to whom an obligation is owed

Answer 4

Obligee

Question 5

One who owes an obligation to another

Answer 5

Obligor

Question 6

What are the Rights that CANNOT be assigned?

Answer 6

Statute expressly prohibits assignment
Contract is personal in nature
Assignment will significantly change the risk or duties of the obligor
Contract prohibits assignment

Question 7

The transfer of land out of one’s possession

Answer 7

Alienation

Question 8

One a valid assignment of rights has been made to a third party, the third party should notify

Answer 8

The obligor that the assignment has been made

Question 9

Giving notice of an assignment is not legally necessary to establish this

Answer 9

Validity of the assignment

Question 10

If the assignor gives the assignment to two different persons, who has priority?

Answer 10

Whoever gives notice first

Question 11

The transfer to another of all or part of one’s duties arising under a contract

Answer 11

Delegation of Duties

Question 12

A party who transfers her or his obligations under a contract to another party

Answer 12

Delegator

Question 13

A party to whom contractual obligations are transferred or delegated

Answer 13

Delegatee

Question 14

What are the Duties that Cannot be Delegated

Answer 14

Performance depends on the personal skill or talents of the obligor
Special trust has been placed in the obligor
Performance by a third party will vary materially from that expected by the obligee
Contract expressly prohibits delegation

Question 15

One for whose benefit a promise is made in a contract but who is not a party to the contract

Answer 15

Third Party Beneficiary

Question 16

A third party for whose benefit a contract is formed; can sue the promisor if the contract is breached

Answer 16

Intended Beneficiary

Question 17

A third party who benefits from a contract even though the contract was not formed for that purpose; has no rights in the contract and cannot sue to have it enforced

Answer 17

Incidental Beneficiary

Question 18

The termination of an obligation such as occurs when the parties to a contract have fully performed their contractual obligations

Answer 18

Discharge

Question 19

The fulfillment of one’s duties under a contract - the normal way of discharging one’s contractual obligations

Answer 19

Performance

Question 20

A qualification, provision, or clause in a contractual agreement, the occurrence or nonoccurrence of which creates, suspends, or terminates the obligations of the contracting parties

Answer 20

Condition

Question 21

A condition in a contract that must be met before a party’s promise becomes absolute

Answer 21

Condition Precedent

Question 22

A condition in a contract that, if it occurs, operates to terminate a party’s absolute promise to perform

Answer 22

Condition Subsequent

Question 23

Conditions that must occur or be performed at the same time - they are mutually depended. No obligations arise until these conditions are simultaneously performed

Answer 23

Concurrent Conditions

Question 24

The failure, without legal excuse, of a promisor to perform the obligations of a contract

Answer 24

Breach of Contract

Question 25

An assertion or action by a party indicating that he or she will not perform a contractual obligation

Answer 25

Anticipatory Repudiation

Question 26

The substitution by agreement of a new contract for an old one, with the rights under the old one being terminated

Answer 26

Novation

Question 27

What are the requirements of novation?

Answer 27

The existence of a previous, valid obligation
Agreement by all of the parties
extinguishing of the old obligation
A new, valid contract

Question 28

A doctrine under which a party to a contract is relieved of his or her duty to perform when performance becomes objectively impossible or totally impracticable

Answer 28

Impossibility of Performance

Question 29

A doctrine that may excuse the duty to perform a contract when performance becomes much more difficult or costly due to forces that neither party could control or contemplate at the time the contract was formed

Answer 29

Commercial Impracticability

Question 30

A court-created doctrine under which a party to a contract will be relieved of his or her duty to perform when the objective purpose for performance no longer exists due to reasons beyond that party’s control

Answer 30

Frustration of Purpose