Exam 13: Third-Party Rights and Discharge

In a creditor beneficiary situation,who are the parties to the contract that creates the creditor-beneficiary relations?

In order to be assignable,a contract usually must provide that the rights can be assigned.

The Restatement (Second)of Contracts refers to both donee and creditor beneficiaries as intended beneficiaries.

Why should the doctrine of commercial impracticability be applied to release a party from duties under a contract when it is still possible for the contract to be performed?

All duties can be delegated as long as the delegator promises to guarantee performance.

With a substituted contract,all duties under the original contract are discharged immediately upon the formation of the substituted contract.

In order to be effective,a condition must be express.

Under which of the following rules does the first assignment in time prevail regardless of notice?

If the transfer of a contract to a third party contains only language of assignment,the modern view holds that there is a corresponding delegation of the duties of the contract.

Usually,a person cannot assign a currently nonexistent right that he or she expects to have in the future.

In Parker v.Arthur Murray,Inc.,Parker sued for a return of prepaid contractual funds based on impossibility of performance after a severe injury.How did the courts rule?

With respect to the assignment of a contract right,which two roles are played by the same party with respect to the specific right and its assignment?

How is a creditor beneficiary relationship usually formed?

Generally,no formalities are required for a valid assignment of rights.

An obligor can raise the defenses of fraud,duress,undue influence,minority,insanity,illegality of the contract,mutual mistake,or payment by worthless check of the assignor against enforcement of the contract by the assignee.

Bob and Sally have an agreement whereby Bob is to mow Sally's yard for $900 for the year.Bob's mower breaks down,and he decides he no longer wants to mow.Instead,he wants to paint.Bob talks to Sally who is not happy about the mowing issue.She tells Bob that it would cost her $1,000 to get the other lawn service in the community to do the mowing for the year.Bob offers to paint Sally's house to settle the dispute.Sally agrees.Bob never shows up to paint.Sally gets someone else to paint the house for $800 and sues Bob for not mowing her yard.Can Sally do so,or is Bob entitled to get the lawsuit involving mowing dismissed because if he breached any contract,it involved painting?

The insured under an insurance policy usually cannot assign her rights to another person.

An incidental beneficiary has no rights to enforce or sue under other people's contracts.

The transfer of contractual rights is called a delegation of rights.

Sarah agrees to paint John's house for $5,000.After Sarah finishes the job,John complains that it was not done correctly.After much discussion,they agree that the contract will be satisfied if John gives Sarah $4,000 and a certain diamond necklace.Which of the following statements is true concerning this situation?