Exam 16: Third Parties to Contracts

Betty owes Agatha $1,000. On March 1 Agatha, for value, assigned the debt to Clara. Thereafter, on March 30, Agatha assigned the same right to Diane. Under the:

A gratuitous assignment is rendered irrevocable if, prior to the attempted revocation, the assignee: a. receives payment of the claim from the obligor. b. obtains a judgment against the obligor. c. Neither of these. A gratuitous assignment is always revocable. d. Both of these.

Notice of an assignment:

Lynne is the intended beneficiary of a third-party contract. Her rights have vested. In an action by Lynne to enforce the promise, the promisor may assert the defense of:

Professor Dought has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Dought's mother is a(n):

After an assignment, only the assignee has a right to the obligor's performance.

Courts will enforce contracts for the benefit of all but which of the following?

A(n) is a third party who obtains possible benefits but no rights under a contract.

The Restatement and Article 2 of the Code provide that, unless circumstances indicate the contrary, a contract term that prohibits the assignment of a contract bars only the delegation to the assignee of the assignor's duty of performance and does not bar the assignment of contract rights.

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend. The band cannot assign its rights and delegate its duties under this contract.

Mr. Homayer hired Blake Painters to paint his house. Blake decides it has too many jobs and delegates the duties to the Andrews Company. Andrews does a poor job, and drips paint on the Homayers' flowers and windows. Mr. Homayer:

Which of the following duties would not be delegable?

Unless otherwise provided by statute, an assignment may be oral.

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

A(n) is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

Give an example of an assignment of rights and explain the relationship of the parties.

The UCC prohibits assignments of $5,000 or more.

An assignor is bound by any express warranties he makes to the assignee with respect to the right assigned.

A promisor and a promisee may provide that the benefits under a contract will never vest in a third person.

A promisor may assert the defense of contractual modification or rescission, even if an intended beneficiary's rights have vested.