Exam 15: Third-Party Rights and Discharge

Joe,a well known plastic surgeon decides he would rather be golfing than perform surgery on his patient Missy's nose.As such,he delegates the job a colleague,Frank who is a highly respected foot doctor.Since Joe chose a competent medical profession to do Missy's nose,the delegation is a valid one.

Someone who owes a duty under a contract is an obligor.

Luziva Co.enters into a contract to deliver 200 coats to Buyer.Luziva determines that it cannot honor the contract,so it assigns the contract to Maniva Co.Maniva Co.delivers the specified 200 coats to Buyer per the contract.Which of the following is true?

The assignee of a legal right is subject to the same defenses as the assignor.

Under an "assumption of duties" the delegatee is legally liable to the obligee for nonperformance.

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?

A contract contains a clause that states,"no part of this contract may be assigned or delegated."

Sally owns 50 acres of vacant land near a large growing university.Sally is elderly and is planning to move out of town to live near her children.Sally plans to donate most of this land to the university in order to build badly needed dorms.She wants to sell a portion of the land,and finds someone who is interested in building a small shopping center.Because the university plans to build housing for about 5,000 students,a shopping center would certainly be successful.Bob purchases the land and begins building the shopping center.Sally showed Bob the agreement that she was entering into with the university regarding the donation of the land.It stated that the university would use the land only for building dorms and that there would be dorms housing 5,000 students within five years.The university built two high-rise dorms and then came under criticism from the local community fearing that 5,000 students would be too many in that space.In addition,revised projections showed a lower rate of enrollment growth in the coming years.The university decided to build housing for only 2,000 students on this land.In addition,they built 1,000 additional units on another parcel of land on the other side of campus.Bob's shopping center is unable to attract tenants because there are not enough potential customers nearby.It is known that he would have no trouble attracting tenants if the housing for all 5,000 students was built on the adjoining land.Bob feels the university has wronged him.Who can he sue and on what basis? If he cannot sue either Sally or the university,indicate why not.

Which of the following duties cannot be delegated?

In general,contract rights may be assigned.Which of the following types of contract rights may not be assigned?

In a novation,both of the original parties are replaced by new parties.

Why should a donee beneficiary be able to sue for the benefit that she was to receive,even though someone to whom a promise of a gift is made directly is not able to sue to enforce the promise of a gift?

Roger contracted with Lori to produce a sculpture of her.The sculpture was to be made to Lori's satisfaction.Upon completion of the sculpture,which of the following is true?

If a contract is silent about assignment and delegation,which of the following is generally true?

Bill may assign his expected right to receive his inheritance from his grandmother Irma to John,his best friend.

Buyer and seller enter into an agreement to sell a mobile home and lot.Before the deed can be signed,the mobile home is destroyed by a tornado.Which of the following doctrines would most likely allow the buyer to avoid his contractual obligations?

Roger wants to buy a new car,so he borrows money from the bank.Several months later,he sells his car to Lisa,who agrees to pay the bank loan.Which of the following is true?

Under the American rule,when an assignor assigns the same right to more than one person,the first assignment in time prevails.

The doctrines of commercial impracticality applies only to unforeseeable events.

A new contract entered into by the parties that revokes and discharges a prior contract is known as mutual rescission.