Exam 15: Third-Party Rights and Discharge

If the assignee fails to provide notice of assignment to the obligor and the obligor continues to render performance to the assignor, the assignee can sue the obligor.

A legal right that arises out of a breach of contract is ________.

Harry's grandmother leaves him a house and a Rolls Royce in her will.What rights does Harry have, in the context of his new inheritance?

Which of the following is used to resolve a case where the obligee fraudulently makes successive assignments of the same right to several assignees?

A famous actor signs a contract with a movie studio where she agrees to star in a comedy.Which of the following is true of assignment of such a contract?

What does the American Rule for successive assignments provide?

Approval clauses require that the assignee approve any assignment of a contract.

A person is permitted to assign a currently nonexistent right that he or she expects to have in the future.

A(n)________ refers to a contracting party who directs that the benefit be conferred on another person.

A(n)________ occurs when there is a transfer of both rights and duties under a contract.

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called an incidental beneficiary.

Under the possession of tangible token rule, the first assignee who receives delivery of the tangible token prevails over subsequent assignees.

An obligee who transfers the right to receive performance is called an assignor.

James hires Franco for a painting job.Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period.Two weeks into the job, James finds out that Franco is also working for a painting agency two blocks away and terminates his employment.This is an instance of ________.

A contract between a retailer and a supplier provides that payment is due upon delivery of goods by the supplier.The retailer's duty to pay and the supplier's duty to deliver constitutes ________.

KnockKnock is a manufacturer of stainless-steel locks which are well known for their durability.The company contacts a new supplier and forms a supply contract.The contract states that KnockKnock would only purchase steel from the supplier if the material supplied was high-grade Type 102 stainless steel.This is an instance of a ________.

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

Condition precedent refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

Which of the following is true of covenants and conditions?

________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.