Exam 11: Privity of Contract and the Assignment of Contractual Rights

A Company contracts to build a house for B,and the contract expressly states that the contractor may from time to time use the services of subcontractors.In the course of performing the contract,one of the subcontractors negligently builds a wall,which falls over,destroying B's car.In this situation,

Mary gives Jack an amount of money to be used to look after her children while she is away.Jack is the legal owner of the money given to him.

An assignee of a contract takes the contract subject to equities.Explain the meaning of this phrase with the use of examples.

The legal owner of trust property is the true owner of the property.

What is vicarious performance? What types of contracts cannot be vicariously performed?

A trustee is the legal owner of the property that he or she is administering.

The effect of the doctrine of privity of contract is that

Who is an assignor?

Peter was a coal merchant.In March 1962,he contracted to sell the business to his nephew John in consideration (1)that for the rest of Peter's life John should pay him $20.00 a week and (2)that if Peter's wife survived him,John should pay her an annual annuity of $15.00 a week.John took over the business and paid Peter the agreed sum until Peter died in November 1963.He then paid Peter's widow $15.00 for one week and refused to pay any more.The widow in both her personal capacity and as administratrix of Peter's estate brought an action against John in which she claimed all arrears under the annuity not paid her and asked for specific performance of the contract regarding the annuity.In this case,

Which of the following is NOT an example of an exception to the privity of contract rule?

Explain the concept of a chose in action.

The rule regarding privity can be overcome by a finding of a collateral contract entered into by the same parties.

Dunlop sold a number of their tires to Dew & Co.on the terms that Dew & Co.would not resell them below certain listed prices and that,in the event of a sale to trade customers,Dew & Co.would get a similar undertaking not to sell below the listed prices.Dew & Co.sold the tires to Selfridge,who agreed to observe the restrictions and to pay Dunlop the sum of $5.00 for each tire sold in breach of this agreement.Selfridge in fact supplied tires to two of their own customers below the listed price.Dunlop now sues Selfridge to recover the two sums of $5.00 as liquidated damages and asks for an injunction to restrain further breaches of the agreement.In this situation,

An exemption clause is a provision in a contract that limits the liability of a party.

Parker owes money to both Gregory and Williams.He agrees with Williams to assign to him the whole of his property if Williams will pay the debt due to Gregory.The property is duly assigned,but Williams fails to pay Gregory.Gregory and Parker sue in equity to compel performance of William's promise.In this situation,

H owes C $700.00.By agreement between H and R,R promises to pay this debt in return for H's undertaking to convey a house to him.C now sues R on his promise.In this situation,

The statement that an assignee "takes subject to the equities" between the parties means that

An undisclosed principal is a contracting party who unknown to the other party is represented by an agent.

Where a promisee has obtained a promise for the benefit of a third party,a constructive trust exists.

A person who,although not the legal owner,may compel the trustee to provide benefits of a trust to him is called the