Exam 16: Third Parties to Contracts

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

The obligor need not receive notice for an assignment to be valid.

A gratuitous assignment is revocable by the assignor.

Elvia has a contract to teach sixth grade at Margena Middle School.She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher.

Name four types of contract rights that are non-assignable.

Kellie owes a duty to Grant and Kellie delegates the duty to Hank.Hank:

a.What is a third party beneficiary? b.Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary.Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

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

A duty may not be delegated if there is an express provision in a contract against delegation.

Anita owes Brad $75,000.Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita.If Brad dies prior to delivering the statement to Cal:

When the rights under a contract are highly personal, they are not assignable.

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Sean has a right against Tanner and assigns it for value to Megan.Later, Sean gives Tanner a release.Megan:

A transfer to a third party of a contractual obligation is known as a(n):