BLAW Chap. 16 – Flashcards

Traditionally, only parties to a contract had rights and liabilities under that contract. This was known as

The transfer of contractual rights to a third party is known as

The person to whom rights in a contract are assigned is called the

An assignment must be in what form?

What rights can be assigned?

When contractual rights are transferred in an assignment, in order to avoid future problems, confusion, or delay, the assignee should

The transfer of contractual duties to someone else is known as

Which of the following duties CANNOT be delegated without consent?

Marta owes Carly $5,000 under a contract for maid services that Carly performed. Carly owes her landlord, Alix, $6,000 in rent. Carly wants to assign to Alix the right to receive the $5,000 from Marta, but the contract between Marta and Carly contains a clause prohibiting its assignment. If Carly assigns the rights anyway, a court will most likely

Mateo enters into a contract with Lisa to work as a chef in his restaurant. He features her in advertising, and she develops a following of loyal customers. Mateo then assigns his rights to Lisa's services to his brother, Sergio, so that Sergio can get his own restaurant off to a successful start. This assignment will

Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. They sign a contract in which Katherine agrees to write the chapter. If Katherine then delegates her obligation to write the chapter to Dana, the delegation

Carlos contracts with Maryann to paint her house. Without Maryann's approval, Carlos then delegates his duties to Justin, who Carlos knows could use the work. If Justin fails to paint the house, Maryann

Dustin's father, Forrest, enters into a life insurance contract that gives Dustin $75,000 when Forrest dies. Dustin is

Rafe promises to pay Jene $5,000 for a purebred, champion bearded collie named Sir Josh. When Rafe discovers that he does not have this amount, Larry promises Rafe that he will pay Jene the $5,000. In this situation, Jene is

Rebecca owns a vacant lot. For years, it has produced nothing but weeds. She has considered selling it, but it has decreased in value, and she does not want to sell it at a loss. Lou owns the adjoining land and has planned to build a shopping center on the land. This would cause Rebecca's land to triple in value. Lou now says that he may not build the shopping center. Rebecca threatens to sue if he does not go ahead with his original plans. In this situation, Rebecca is

In Revels v. Miss America Organization, Case 16.3, concerning the possible exposure of nude photos of a Miss America contestant, the issue was whether

Castle and Harlan headed Castle Harlan, Inc., an investment firm. They agreed with the federal government to buy Western Empire Federal Savings and Loan (Western) to return it to operation out of bankruptcy. Castle and Harlan invested $2,000; their client investors supplied the $26.2 million balance. To encourage Castle Harlan to make the deal, the government agreed not to impose certain federal regulations on Western for two years. All investors were identified in the contract as intended beneficiaries, but only Castle Harlan signed the contract. Federal law changed after the purchase took place, and the government, although keeping its agreement not to impose the regulations listed in the contract, imposed new, similar regulations on Western. Western went out of business as a result. Castle Harlan and the investors sued, alleging that the government breached the contract. The government moved to dismiss all investors except Castle Harlan from the lawsuit, because no one but Castle Harlan had signed the contract. The court most likely

Abby's Cakes leased space in a shopping center from Colonial Plaza. The lease said that Colonial would pay a construction allowance of $11,250 to Abby's if Abby's would complete improvements to the premises. The lease also said that any "assignment, mortgage, pledge, or encumbrance" made without Colonial's consent would be void. Abby's began the improvements and, without Colonial's consent, assigned its right to the first $8,000 of the construction allowance to Aldana. Aldana in turn loaned Abby's $8,000 to finance the construction. Aldana notified Colonial of the assignment. Abby's completed the improvements. Colonial ignored the assignment and paid Abby's the construction allowance. Aldana sued Colonial for $8,000 due to him under the assignment. Colonial claimed the assignment was prohibited by the lease agreement and was void. The court most likely held that Aldana was

When Charles and Judy Orr were divorced, their divorce agreement said Charles would pay for the college education of their children, who were then minors. Twenty years later, when daughter Jennifer was attending college, Charles refused to pay her tuition. Jennifer sued her father for breach of contract, seeking to compel him to pay the tuition. Charles contended that Jennifer could not sue him because she was not a party to the agreement. The court most likely held that Jennifer

Clement was injured in a car accident with King. Clement sued King. King retained an attorney, Prestwich, to defend her, but they lost the case, and the court awarded a $21,000 judgment to Clement. King believed Clement won the case because Prestwich had been negligent and committed malpractice. Rather than paying the judgment, King sent Clement a written assignment of her malpractice claim against Prestwich. Clement filed the malpractice claim against Prestwich. Prestwich contended that malpractice claims are not assignable, because they arise from a personal contract. The court most likely held that the assignment was