H Chapter 14

Question 1

Assignment

Answer 1

Transfer of K rights

Question 2

Assignor

Answer 2

one who assigns rights

Question 3

Assignee

Answer 3

one to whom rights are assigned

Question 4

Delegation

Answer 4

Transfer of K duties

Question 5

Delegator

Answer 5

one who delegates duties

Question 6

Delegatee

Answer 6

one to whom duties are delegated

Question 7

When can’t you do a assignment and/or delegation

Answer 7

The contract is personal in nature ( special skill or trust etc)

Prohibited by contract or law

Greatly increases risk to a party ( especially can happen in delegation)

Question 8

Assignment of All Rights

Answer 8

usually means an assignment of rights and a delegation of duties assignor remains liable if assignee fails to perform

Question 9

3rd Party Beneficiaries

Answer 9

A third party not a party to the original K who stands to benefit from that original K

Question 10

Types of 3rd Party Beneficiaries

Answer 10

Creditor….stands to benefit due to a debt owed

Donee…….stands to benefit due to an intended gift ( most common = life insurance)

Incidental….no intent and therefore have no rights

Question 11

What do rights vest?

Answer 11

3rd party demonstrates express consent

3rd party materially alters position

Vesting conditions are satisfied ( in life insurance when insured dies)

Question 12

Discharge

Answer 12

termination of obligation

Question 13

Performance

Answer 13

fulfillment of K duties

Question 14

Condition

Answer 14

An event whose occurrence creates rights and duties

Types

Question 15

Condition Precedent

Answer 15

Something that must occur before to trigger K rights/duties

Ex: Before you rent apt you must pay 3 month rent including security

Question 16

Condition Concurrent

Answer 16

Something that must happen at same time as something

else

Ex: You must pay at the same time as delivery or no delivery ( COD)

Question 17

Condition Subsequent

Answer 17

Something that will terminate or extinguish K rights/duties

Ex: tenant is evicted because landlord found pet and no pets allowed

Question 18

Complete Performance

Answer 18

Total 100% performance as expected

Question 19

Substantial Performance

Answer 19

Enough performed to satisfy K purpose ( seen in construction because so hard /$ to correct any deviation) ( not seen in UCC sales Ks as much because easier to fix issues)

Once a court rules substantial performance then the defendant only liable for difference between agreed performance and obtained performance

Ex: A wants a 20K pool gets an 18 K pool and court rules substantial performance even though repair to make pool a 20K as originally agreed would cost 5K. Plaintiff only gets 2K.

Question 20

Personal Satisfaction Conditions

Answer 20

need only be subjective and objective view does not matter Ex. A agrees to pay B $ 500 if A’s mom likes a painting of mom. If mom does not like the painting A does not have to pay even if painting was great as per experts.

Question 21

Material Breach

Answer 21

major breach that allows all to leave because it violates basic K purpose

Question 22

Anticipatory Breach/Repudiation

Answer 22

Executory K where one party tells other that he will not finish performance so other party can:

Sue when due

Sue now

Encourage performance….let’s work it out

Question 23

Rescission

Answer 23

Discharge by mutual agreement..parties back to where started

Question 24

Novation

Answer 24

Same K but change one of parties

Question 25

Accord and Satisfaction

Answer 25

Agree to lesser performance ( check cases or perfect consideration case discussed earlier )

Question 26

Discharge by Operation of Law

Answer 26

Material Alteration = one of party changes K too much

Statute of Limitations = time runs out

Bankruptcy =someone out of money and gets BK ruling

Impossibility = Something happens that makes performance impossible

Question 27

Material Alteration

Answer 27

one of party changes K too much

Question 28

Statute of Limitations

Answer 28

time runs out

Question 29

Bankruptcy

Answer 29

someone out of money and gets BK ruling

Question 30

Impossibility

Answer 30

Something happens that makes performance impossible

Question 31

Types

Answer 31

Subjective….not really good…person claims cannot be many could

Objective….good……nobody can do it

Personal performance required…only certain one can do and cannot

Important item destroyed/person killed or incapacitated

Change in law

Question 32

Commercial Impracticability

Answer 32

Panama Canal Case ( case not in book)…unforeseen events make performance unreasonable/unfair/hardship

Question 33

Frustration of Purpose

Answer 33

Coronation Case ( case not in book )…unforeseen events frustrate the original purpose of K