(Q1) Third Party Contracts, Termination of Contracts, Breach of Contract pg 16,17,18 Flashcards
Beneficiary
person not a party to a contract that receives some benefit from it.
creditor beneficiary
loans money to a party of a contract
- may sue for breach
Donee Beneficiary
receives a gift under a contract
- may sue for breach
Assignments
transferring rights under a contract to a 3rd party; assignor to assignee
Delegation of duties
transferring your obligation to a 3rd party
Rules for Delegation of Duties
- can not transfer personal service contracts
- transferor is not relieved of liability
- if new party is substituted in for a party and other original party agrees to release the transferor of liability, a new contract is formed and is called a “Novation”
Form of the assignment or delegation (written or oral)
Can be oral or written unless: contract comes within statute of frauds or contract itself states it must be written.
Multiple party contracts
at least two or more parties on at least one side of the contract
Joint
two parties agree to perform together as one
Several
each party agrees to perform separately as individuals
Joint and Several
each party agrees to perform both individually and together
Reason to Terminate Contracts
- Performance: must be substantial and satisfactory to both parties
- By Operation of Law: Bankruptcy, expiration of statute of limitations (5 years for verbal, 10 years for written), material alteration of a written contract
- Impossibility of Performance: death (can have exceptions), insanity, illegality
- Voluntary Agreement to terminate contract
Remedies for Breach of Contract
you can either rescind and walk away OR sue for breach of contract
Types of Money Damages
compensatory
punitive
nominal
liquidated
compensatory
Actual damages you suffer.
