Exam 13: Third-Party Rights and Discharge

When parties enter into a contract,they can agree that the performance of one of the parties should be rendered to or directly benefit a third party.Under such circumstances,the third party is called an incidental third-party beneficiary.

Which of the following is a correct statement regarding the assignment of a legal action?

Third-party beneficiaries are either intended or incidental beneficiaries.

If the promisor fails to perform in a donee beneficiary contract,the donee beneficiary can sue the promisor directly.

An accord and satisfaction discharges the original contract upon the formation of the accord.

In the United States,most contract rights are assignable.

If the contract requires the occurrence (or nonoccurrence)of an event before a party is obligated to perform a contractual duty,there is a condition precedent.

When there has been a valid assignment of rights,the assignee "stands in the shoes of" the assignor.

Although the assignor often uses the word assign,other words or terms such as sell,transfer,convey,and give are sufficient to indicate intent to transfer a contract right.

When a person enters into a contract with the intent to confer a benefit or gift to an intended third party,the contract is called a ________ contract.

The two (2)kinds of intended third-party beneficiaries have traditionally been called:

In many instances,the parties to a contract unintentionally benefit a third party when a contract is performed.In such situations,the third party is referred to as an incidental beneficiary.

Who can a donee third-party beneficiary sue under a contract?

The "English rule" provides that the first assignment in time prevails,regardless of notice.

Which of the following statements is correct regarding assignment of the provisions of personal services?

Under which types of delegation of duties does the delegator remain liable for the performance of the duty?

The ________ Rule regarding successive assignments provides that the first assignee to give notice to the obligor prevails.

An obligor is someone who owes a duty of performance.

The right to sue another party for a violation of personal rights can usually be assigned.

An intended third-party beneficiary can sue to enforce the related contract.