Chapter 16: Third Parties To Contracts

Question 1

Obligor

Answer 1

Party owing a duty under original contract

Question 2

Obligee

Answer 2

Party to whom a contractual duty of performance is owed.

Question 3

Assignment of rights

Answer 3

Voluntary transfer to a third-party of the rights arising from a contract

Question 4

Assignor

Answer 4

Party making an assignment

Question 5

Assignee

Answer 5

Party to whom contractual rights are assigned.

Question 6

Delegation of duties

Answer 6

Transfer to a third party of a contractual obligation

Question 7

Delegator

Answer 7

Party delegating his duty to a third-party

Question 8

Delegatee

Answer 8

Third-party to whom the delegator’s duty is delegated

Question 9

Revocability of assignment

Answer 9

When the assignee gives consideration, the assignor may not revoke the assignment without the assignee’s consent.

Question 10

Partial assignment

Answer 10

Transfer of a portion of contractual rights to one or more assignees.

Question 11

Rights of the assignee

Answer 11

Assignee stands in the shoes of the assignor.

Question 12

Setoff

Answer 12

Claim by obligor against assignor arising out of an entirely separate transaction.

Question 13

Implied warranty

Answer 13

Obligation imposed by law upon the transferor of property or contract rights

Question 14

Express warranty

Answer 14

Explicitly made contractual promise regarding the property or contract rights transferred

Question 15

Successive assignments of the same right

Answer 15

The majority rule is that the first assignee in point of time prevails over later assignees; minority rule is that the first assignee to notify the obligor prevails.

Question 16

Delegation of duty

Answer 16

Transfer to a third-party of a contractual obligation

Question 17

Assumes

Answer 17

delegatee agrees to perform the contractual obligation of the delegator

Question 18

Delegation

Answer 18

Delegator It’s still bound to perform original obligation

Question 19

Novation

Answer 19

Contract, to which the promisee is a party, substituting a new promisor for an existing promisor, who is consequently no longer liable on the original contract and is not liable as a delegator.

Question 20

Third-party beneficiary contract

Answer 20

Contract and which one party promises to render a performance to a third person

Question 21

Intended beneficiary

Answer 21

Third-party intended by the to contracting parties to receive a benefit from their contract.

Question 22

Incidental beneficiary

Answer 22

Third-party whom the two parties to the contract have no intention of benefiting by their contract and who requires no rights under the contract.

Question 23

Donee beneficiary

Answer 23

A third-party intended to receive a benefit from the contract as a gift

Question 24

Creditor beneficiary

Answer 24

A third person intended to receive a benefit from the agreement to satisfy a legal duty owed to him.

Question 25

Rights Of intended beneficiary

Answer 25

An intended donee beneficiary may enforce the contract against the promisor; and intended creditor beneficiary may enforce the contract against either or both the promisor and the promisee.

Question 26

Defenses against beneficiary

Answer 26

In an action by the intended beneficiary to enforce the promise, the promise or may certain any defense that would be available to her if the action has been brought by the promisee.

Question 27

Incidental beneficiary

Answer 27

Third-party him the two parties to a contract have no intention of benefiting by their contract