third party issues

Question 1

intended third-party beneficiaries

Answer 1

parties to the K intend for TPB to benefit from K; TPB has rights under the K

Question 2

incidental third-party beneficiaries

Answer 2

stands to benefit from k although not intended by parties to the K; no rights under K

Question 3

vesting of third-party beneficiary rights

Answer 3

occurs when the TPB either:
1) accepts benefits
2) sues to enforce
3) detrimental reliance

Question 4

assignment

Answer 4

a transfer of rights under a K to a third party after the K is formed

Question 5

revocability of assignments

Answer 5

gratuitous assignments may be revocable, but assignments made for consideration are irrevocable

Question 6

assignee right to sue

Answer 6

assignee can sue
1) obligor for nonperformance
2) assignor for breach of any implied warranties

Question 7

delegation liability

Answer 7

delegator remains liable for delegatee’s performance

obligee may sue delegator for non-performance by delegatee; may only sue delegatee if the delegatee has assumed duties of the entire K

Question 8

non-delegable duties

Answer 8

1) duties involve personal judgment and skill
2) delegation materially changes the obligee’s expectancy under the K
3) K prohibits delegation
4) prohibited by statute or public policy