Paper

Question 1

Third Party Beneficiary

Incidental v. Intended

Answer 1

Only intended beneficiary have contract rights

Intended Beneficiary:

1) identified in contract, or
2) Receives performance directly
3) Some relationship w/ promisee to indicate intent

Question 2

Assignment Revocability

Answer 2

Assignments are split into two:

1) For Value:
a) donee for consideration, or
b) taken as a security payment for preexisting debt.
c) = Cannot be revoked

2) Gratuitous
a) not for value
b) = Are revocable

c) Exceptions: 1) Obligor already performed, 2) a taken chose is delivered, 3) assignment of simple change in writing, detrimental reliance.

Question 3

What cannot be assigned?

Answer 3

1) Substantially change the obligors duty or risk
2) Assignment of future rights to arise from contract
3) Assignment prohibited by law