Swaggy P- 3rd party rights – Flashcards
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A transfer of contract rights to a third party is a delegation.
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Privity of contract refers to the fact that traditionally contracting parties alone have rights and liabilities under their contract.
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The person to whom rights in a contract are assigned is the assignee.
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An assignee can compel the obligor to perform
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An assignee's rights are subject to the defenses that the obligor has against the assignor
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To be enforceable, any assignment covered by the Statute of Frauds must be in writing.
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If a statute prohibits the assignment of certain rights, those rights cannot be assigned.
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An assignment of a negotiable instrument is generally prohibited.
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An assignment is effective immediately, whether or not notice is given.
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The assignment of the same contract right to two different parties automatically cancels both assignments.
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To make an effective delegation, the delegator must use the word delegate.
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A delegation relieves the party making it of the obligation to perform.
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Alienation is a transfer of contract rights between citizens of different nations.
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Both intended and incidental beneficiaries acquire legal rights in a contract.
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A creditor beneficiary can sue the promisor directly for breach.
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A "donee" beneficiary is a type of an "incidental" beneficiary.
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A life insurance contract is a third party beneficiary contract involving a donee beneficiary.
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The rights of a third party beneficiary under a contract vest if the third party brings a suit on the promise.
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An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.
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Designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.
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Nashville Harmonies Inc. and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her. Taylor transfers her right to payment under the contract to Omni Entertainment Agency. In the transfer of rights, Taylor is
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an assignor.
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Basil and Rosemary enter into a contract for the sale of Basil's condominium to Rosemary. She transfers her right to be recorded as the owner of the property to her son Sage. This transfer is
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an assignment.
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Tanya attempts to free herself from the duties of her contract with Drew by telling Drew to find someone else to perform them. This is
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none of the choices.
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Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60. Cory wants to transfer her right to payment for the book to Del. This transfer
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may be oral or written.
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Commercial Shipping, Inc., and Dock Services Corporation enter into a contract for Dock to load Commercial's barges for which Commercial agrees to pay Dock. Dock transfers its duty to load the barges to Riverside Freight Company. Dock is
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a delegator.
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Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio. When Rico's schedule conflicts, he asks Oliver to perform his duties at the closing. This transfer of duties is
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a delegation.
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A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits
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any assignment.
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Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly. Reba later transfers her duty under the contract to Troy. Reba is
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a delegator and an obligor.
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Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month. Jocasta cannot transfer this duty
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without continuing to be potentially liable.
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Parsley, a world-famous chef, signs a contract to give lessons in French cooking to Curry. Parsley wants to transfer his duties under the contract to Relish, the operator of a hot dog concession. The transfer is
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not valid because performance depends on Parsley's personal skills
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Fiorella and Midwest Agri-Ship, Inc., enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest. Due to schedule conflicts, Midwest contacts Hybrid Crop Transport Company, to which Midwest "assigns all rights under the contract." This transfer is
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an assignment and a delegation.
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Heather and Genice agree that Genice can satisfy her debt to Heather by paying the money directly to Fava (to whom Heather owes a debt). The designation of this contract as a third party beneficiary contract is determined by the intent to benefit
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Fava only.
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Betty assigns her right to payment of a loan to Cody. Cody is
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a creditor beneficiary.
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George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property. This is
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a third party beneficiary contract.
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Fact Pattern 16-B1 (Questions B15-B18 apply) Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store.
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Refer to Fact Pattern 16-B1. Halfway through the project, Bayside refuses to finish the job. The contract can be enforced against Bayside by
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Clio or Dewey only.
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Refer to Fact Pattern 16-B1. Dewey is
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an intended beneficiary.
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Refer to Fact Pattern 16-B1. The value of Fresh Food's property will increase after Dewey's store is remodeled. Fresh Food is
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an incidental beneficiary.
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Refer to Fact Pattern 16-B1. Eagle will realize a profit from the sale of products to Bayside to remodel Dewey's store. Eagle is
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an incidental beneficiary.
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Jen is a third party beneficiary under a contract between Kyla and Leo. Kyla and Leo can modify or rescind their contract without Jen's consent
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before Jen's rights have vested.
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Ron makes a contract with Stu that indirectly benefits Tim, although neither Ron nor Stu intended that result. Tim is
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an incidental beneficiary.
