Chpater 16 Flashcards
What is a “third party beneficiary”?
someone who was not a party to the contract but stands to benefit from it
Distinguish an “intended beneficiary” from an “incidental beneficiary”.
intended= someone who may enforce a contract made between two other parties incidental= someone who might have benefited from a contract between two others but has no right to enforce that agreement
Which type type can enforce a contract which benefits them even if they are not a party to the contract?
Intended beneficiary
What is a party allowed to assign under a contract?
a delegation of duties. a party may make an assignment and delegation simultaneously, transferring both rights and duties to a third party.
Any contractual agreement may be assigned unless assignment:
a) would substantially change the obligor’s rights or duties under the contract
b) is forbidden by law or public policy
c) is validly precluded by the contract itself
What may a party seek to delegate under a contract?
Most duties are delegable. But delegation does not by itself relieve the delegator of his own liability to perform the contract
As long as the delegation of duties are not:
- violating public policy
- the contract prohibits delegation
- the obligee has a substantial interest in personal performance by the obligor
Does delegation relieve the delegating party of his.her liability/obligations under the original contract? Why?
No, – unless the obligee agrees otherwise, delegation does not discharge the delegator’s duty to perform
May a non- delegating party successfully object to delegation of a specific duty? When?
repudiated= he has formally notified the other side he will not perform his side of the contract
What is an assignment?
the transfer of the assignor’s contract rights to the assignee
What is a delegation?
transfers the delegator’s duties to the delegatee
What is a novation?
a three-way agreement in which the obligor transfers all rights and duties to a third party. The obligee agrees to look only to that third party for performance.
