Exam 17: Third Party Rights

Desu, an accountant, and Engineers PA enter into a contract under which Desu agrees to perform audits for Engineers. Desu can delegate the duty to perform the audits to

Beck and Call enter into a contract under which Beck agrees to cater Call's wedding. The contract expressly prohibits any transfer of rights without the assignee's consent. Call may transfer the right to receive Beck's services to Dion

If it were not possible to assign contract rights, many businesses could not continue to operate.

A contract between Max and Nye provides for an "assignment of all rights." Max "assigns the contract" to Olin. Because a court will normally construe this wording as implying both an assignment of rights and a delegation of duties, if Olin fails to perform

For a price, Rose agrees to unload the catch from fishing boats that dock at Seafood Shipping. Rose delegates this duty to Tina, who then owes performance of the duty to the warehouse. Tina is

For a price, Ray agrees to unload trucks that make deliveries to Shoppers Warehouse. Ray delegates this duty to Tim, who then owes performance of the duty to the warehouse. Ray is

Under an assignment of "all rights" on a contract, the assignor is absolved from any liability for performance under the contract.

On an assignment to a loan broker by an auto dealer of the payments due on an auto loan, the broker obtains only those rights that the dealer originally had.

An obligee can legally refuse performance from a delegatee only if the duty delegated is one that cannot be delegated.

An insurance policy cannot be assigned if the assignment will significantly alter the risks to, or the duties of, the insurer.

Expressly designating a third party as a beneficiary in a contract indicates that the beneficiary is intended.

Personal services are unique to the person rendering them, but the right to receive those services is not and can therefore be assigned.