Chapter 17 Third Party Rights

Question 1

Privity of contract

Answer 1

A contract is a private agreement between the parties who have entered into it

Question 2

Assignment

Answer 2

Transfer of contractual rights to a third party

Question 3

Right

Answer 3

One party requires the other party to perform some task

Question 4

Delegation

Answer 4

Transfer of contractual duties to a third party

Question 5

Duty

Answer 5

The party’s obligation to perform

Question 6

Assignor

Answer 6

The party assigning the rights

Question 6

Assignee

Answer 6

The party receiving the rights

Question 7

Obligee

Answer 7

The person to whom the duty is owed

Question 8

Obligor

Answer 8

The person who needs to perform duty

Question 9

Delegator

Answer 9

The party delegating duties

Question 10

Delegatee

Answer 10

The party to whom duties are delegated

Question 11

Third party beneficiary

Answer 11

When original parties to a contract agree that the contract performance should be rendered to or directly benefit a third person

Question 12

Creditor beneficiary

Answer 12

A creditor beneficiary benefits from a contract in which one party (the promisor) promises another party (the promisee) to fulfill a duty that the promisee owes to a third party (the creditor beneficiary)

Question 13

Donee beneficiary

Answer 13

When a contract is made for the express purpose of giving a gift to a third party, the third party (the donee beneficiary) can sue the promisor directly to enforce the promise

Question 14

Incidental beneficiary

Answer 14

A third person receives a benefit from a contract even though that person’s benefit is not the reason the contract was made