Fundamentals of Business Law Chapter 11 – Flashcards
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Assignment
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The transfer of contract RIGHTS to a third person
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Privity of contract
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Third parties have no rights in contracts to which they are not parties
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Assignor
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party assigning the rights to a third party
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Assignee
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party recieving the rights
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Obligee
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Person to whom a duty or obligation is owed
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Obligor
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the person who is obligated to perform the duty
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Alienation
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the voluntary transfer of land ownership
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Delegation of duties
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The act of transferring to another all or part of one's duties arising under a contract
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Delegator
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the party making the delegation
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Delegatee
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party to whom the duty has been delegated
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Third party beneficiary
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One for whose benefit a promise is made in a contract but who is not a party to the contract
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Intended beneficiary
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A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
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Incidental beneficiary
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A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. Has no rights in a contract and cannot sue to have the contract enforced
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Discharge
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terminate (one's contractual duties)
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Performance
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fulfillment of one's duties
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Condition
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the occurrence or nonoccurrence of which will trigger the performance of a legal obligation or terminate an existing obligation under a contract
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Condition precedent
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A condition that must be fulfilled before a party's promise becomes absolute
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Condition subsequent
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When a condition operates to terminate a party's absolute promise to perform
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Concurrent conditions
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when each party's absolute duty to perform is conditioned on the other party's absolute duty to perform
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Tender
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an unconditional offer to perform by a person who is ready, willing, and able to do so
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Breach of contract
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the nonperformance of a contractual duty
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anticipatory repudiation
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Before either party to a contract has a duty to perform, one of the parties may refuse to perform her or his contractual obligations
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Mutual rescission
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the process in which the parties cancel the contract and are returned to the positions they occupied before the contract's formation
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Novation
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substitutes a third party for one of the original parties
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Impossibility of performance
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after a contract has been made, performance may become impossible in an objective sense
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Commercial impracticability
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when the performance becomes much more difficult or expensive than the parties originally contemplated at the time the contract was formed
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Frustration of purpose
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a contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when making the contract
