Exam 13: Third-Party Rights and Discharge

Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?

Nancy owes $5,000 to Kenneth and promises to pay it after two months.Kenneth assigns his right to collect the money to Delmar,who does not inform Nancy,for a payment of $3,500.After a few weeks,in need of money,Kenneth assigns the rights to Kelly,for a payment of $3,000.Kelly notifies Nancy of their agreement.According to the English rule,________.

An agreement whereby parties agree to accept something different in satisfaction of the original contract is called a(n)________.

Mr.Jacob,who is terminally ill,writes a will transferring all his assets to his daughter Silvia,in the event of his death.The doctors say that Mr.Jacob will live for about six months.The day after the will is written,Silvia wishes to transfer her expected inheritance to her son,Jacob Jr.This assignment will be ________.

Which of the following is an illustration of the possession of tangible token rule?

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

Which of the following is true of third-party beneficiaries?

Among the parties to a contract,the ________ is the debtor.

The nonperformance of an unconditional promise to perform is not considered to be a breach of contract.

The duties for which an obligee has a substantial interest in having an obligor perform cannot be transferred to a third party.

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

The injured party loses the right to sue if the lawsuit is brought after the ________ expires.

Helen contracts with a local builder to construct a church in her neighborhood.The locals will benefit by having a church that may raise the housing value in the locality.The builder breaches the contract and the locals intend to hold him legally liable for nonperformance.Discuss an argument for or against the intentions of the locals.

Unilateral rescission of a contract by one of the parties without the other's consent is enough to discharge an agreement.

Compare and contrast between contract provisions that are conditions and contract provisions that are covenants.

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

The Restatement (Second)of Contracts eliminates the distinction between conditions precedent and conditions subsequent.

Once a contract has been substituted with another contract,the original contract cannot be enforced against a breaching party.

Which of the following is true of covenants and conditions?

In a creditor beneficiary contract,if the new debtor fails to perform according to the new contract,the creditor beneficiary can ________.