Chapter 16

Question 1

What is an assignment of rights

Answer 1

Voluntary transfer to a third party of the rights arising from the contract so the assignors right is extinguished

Question 2

What is an assignor and assignee

Answer 2

Assignor makes the assignment

Assignee is the party contract rights are assigned to

Question 3

What is an obligor and obligee

Answer 3

Obligor owes a duty under contract

Obligee is the party to whom a duty is owed

Question 4

What contracts are not assignable

Answer 4

Assignments that increase the duty/burden of the obligor
Personal rights (celebrity appearances)
Forbidden expressly by contract
Prohibited by law

Question 5

What is implied warranty

Answer 5

Obligation imposed by law upon the assignor of a contract right. Cannot defeat or impair the value of the obligation, and the assigned right exists under a valid agreement.

Question 6

What are the rights of the assignee

Answer 6

Stands in shoe of assignor,. Defenses of obligor may be asserted against assignee. Notice is not required but advisable

Question 7

If an assignor assigns the same rights to multiple parties, what would happen?

Answer 7

Majority opinion is first assignee receives the rights. Minority opinion is first to notify obligor. Second assignee could sue for breaching implied warranty

Question 8

What is delegation

Answer 8

Transfer to third party of a contractual obligation

Question 9

What is delegator and delagatee

Answer 9

Delegator is party delegating his due to a third party

Delegatee is the third party to whom the duty is delegated to

Question 10

What falls under delegability

Answer 10

Personal (celebrity performances)
Expressly nondelegable
Prohibited by statute/public policy

Question 11

What is novation

Answer 11

Contract to which the obligee is a party and substitutes the original promisor for a new one in a new contract

Question 12

What is a third party beneficiary contract

Answer 12

A contract in which one party promises to render performance to another party

Question 13

What is an intended beneficiary

Answer 13

Third parties intended to receive benefit by the two contracting parties

Question 14

What is a creditor beneficiary

Answer 14

A third party intended to receive a benefit for satisfying a legal duty owed/paying someone’s debt

Question 15

What is a donee beneficiary

Answer 15

a third party intended to receive benefit from a contract as a gift

Question 16

What is vesting of rights

Answer 16

If the beneficiaries rights vest, the promisee/promisor cannot change these vested rights

Question 17

What is an incidental beneficiary

Answer 17

Third party the two parties in a contract have no intention of benefiting and acquires no rights