Chapter 14 Vocabulary

Question 1

The relationship that exists between the promisor and the promisee of a contract.

Answer 1

Privity of Contract

Question 2

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

Answer 2

Assignment

Question 3

A party who transfers his or her rights under a contract to another party (the asignee).

Answer 3

Assignor

Question 4

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

Answer 4

Assignee

Question 5

One to whom an obligation is owed.

Answer 5

Obligee

Question 6

One who owes an obligation to another.

Answer 6

Obligor

Question 7

A transfer of title to real property (which alienates the real property from the former owner).

Answer 7

Alienation

Question 8

The transfer to another of a contractual duty.

Answer 8

Delegation of Duties

Question 9

A party who transfers (delegates) her or his obligations under a contract to another party (the delegatee).

Answer 9

Delegator

Question 10

A party to whom contractual obligations are transferred, or delegated.

Answer 10

Delegatee

Question 11

One who is not a party to the contract but who stands to benefit from the contract’s performance.

Answer 11

Third Party Beneficiary

Question 12

A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if the contract is breached.

Answer 12

Intended Beneficiary

Question 13

A third party who benefits from a contract even though the contract was nor formed for that purpose. An incidental beneficiary has no rights in the contract and cannot sue to have it enforced.

Answer 13

Incidental Beneficiary

Question 14

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

Answer 14

Discharge

Question 15

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

Answer 15

Performance

Question 16

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 16

Condition

Question 17

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

Answer 17

Condition Precedent

Question 18

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

Answer 18

Condition Subsequent

Question 19

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

Answer 19

Concurrent Conditions

Question 20

An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.

Answer 20

Tender

Question 21

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

Answer 21

Breach of Contract

Question 22

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

Answer 22

Anticipatory Repuidation

Question 23

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

Answer 23

Novation

Question 24

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 24

Impossibility of Performance

Question 25

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 foresee at the time the contract was formed.

Answer 25

Commercial Impracticability

Question 26

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 26

Frustration of Purpose