Exam 12: Third Parties,discharge,and Remedies

Whether the assignee gives notice of an assignment to the obligor,the obligor is generally not excused from performing under the contract.

Quantum meruit damages are court-created damages awarded to parties who have experienced an injury to their legal rights,but no actual loss.

Based on a written mortgage,Jackie's payment to Commerce Bank was due on June 1.On May 31,Jackie received a phone call that her mortgage had been assigned to Brown Investments.Under the equal dignities rule,Jackie still has a legal obligation to perform on time.

Promising to pay when goods are delivered is an example of substantial performance.

Miko and Gina enter into a written contract.If Miko assigns her part of the agreement to Teresa and Teresa tells Gina of the assignment,Gina is only bound by express warranties made to Teresa under the terms and conditions of the assignment.

The frustration of purpose doctrine applies when a party to a contract expresses or clearly implies an intention not to perform to contract,even before being required to act.

John,a highly skilled mechanic specializing in Jabooti motorcycles,agrees to repair Gladys's Jabooti motorcycle,but when he becomes ill,he transfers that responsibility to Clark,a friend of his.The transfer to Clark is called a(n):

Morey and Sheryl enter into a contract in which Morey agrees to pay Sheryl $40 to collect his mail while he is on a month-long vacation.Sheryl then delegates the duty to her son,Greg.In this delegation,Sheryl is the:

Dr.Ben is an experienced plastic surgeon who has been in medical practice for nearly 30 years.Dr.Ben delegates his scheduled surgery on Samuel to Dr.Sue,who is a family physician "on call" while Dr.Ben is away on a salmon-fishing trip in Alaska.The delegation is legally valid.

________ occurs when one party makes false statements or commits some sort of false action that causes another party to rely on those falsehoods and then experience an injury or loss as a result.

Dash's auto insurance policy requires that he file a written notice of a claim with the insurance company within ten days of any damage in an auto accident or the insurance company may refuse to pay the damage claim.Dash has several accidents and always simply orally reports the damage to the insurance agent,and the insurance company pays the claim;however,on this occasion,after his failure to file a written notice of the claim,the company refuses to pay the claim.They cite the express language of the insurance policy.Is the insurance company correct? Discuss.

Which of the following is true of "time for performance"?

Satisfactory performance:

Claudia contracts with Friendly Paving Co.to install a new driveway.To pay for this work,Claudia transfers to Friendly Paving Co.her right to receive payment from Clifford for a loan she made him.Friendly Paving Co.is now a(n):

If Jackson transfers his business accounts receivable in the general course of business to Friendly Finance Company,Friendly would be considered the assignor.

A done beneficiary is an individual who provides consideration and is generally one of the contracting parties.

Alphonse owes huge debts to many creditors.A month before filing for bankruptcy,he distributes all of his assets to his church.Discuss the case.

If the contract includes a condition that "time is of the essence," the time period will be a reasonable period of time.

A transfer of a contract right is called an assignment.

________ performance occurs when a party,in good faith,executes all promised terms and conditions with the exception of minor details that do not affect the real intent of their agreement.