Chapter 17 Flashcards
1
Q
Traditionally only original party’s had rights in contracts. This was called
A
Privity of contract
2
Q
Rights that cannot be assigned
A
The assignment is prohibited by statues
- The contract is personal
- The assignment significantly changed the risk or duty of the obligor
- The contract prohibits assignment
3
Q
Contract cannot prohibit assignment of ….
A
A contract cannot prevent an assignment of the right to receive funds
- The assignment of rights in real estate
- The assignment of negotiable instruments
- In a contract for the sale of goods, the right to recoeve damages for breach of contract or of a account owed
4
Q
All duties can be delegated unless
A
- preformance depends on the obligor’s personal skills or talents or special trust has been placed in the obligor
- Preformance by a third party will materially vary from that expected by the obligee
- The contract prohibits delegation
5
Q
What can be delegated if the contract prohibits delegation?
A
No duties can be delegated
6
Q
What if a contract prohibits assignment ?
No rights can be assigned except
A
- Right to receive funds
- The contract is for personal services
- Rights to negotiable instruments
- rights to damages for breach of sales contract or payments under a sale contract
7
Q
When an assignment has taken place what is the effect on the rights of the original party
A
On a valid assignment, effective immediately the original party no longer has any rights under the contract
