Exam 15: Third Party Rights

As long as the delegator expresses an intention to make the delegation, it is effective.

Lance enters into a contract to mow Mary's yard every week for the summer. Mary sells her house and yard to Nora, and assigns the right to receive Lance's services to Nora. Mary is

A creditor beneficiary cannot sue the promisor directly to enforce the contract.

An intended beneficiary can sue directly to enforce a promisor's promise.

Privity of contract establishes the basic concept that parties to a contract have privacy rights with respect to the terms.

As long as a contract is personal in nature, the right to receive those services can be assigned.

Contract duties are not assigned-they are delegated.

Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. A week later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is

A contract stating that any assignment is void effectively prohibits the assignment of rights.

Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be

Pablo and Roth agree that Pablo will fix Roth's boat dock in exchange for $5,000. Pablo spends half of the amount due under the contract to acquire the materials for the job from Seaside Lumber. Seaside is

Beta Corporation and Code Inc. enter into a contract for the design of custom software for which Beta agrees to pay $5,000. Code transfers the right to payment under the contract to Debits LLC. Debits is

If a delegation of duties is enforceable, the obligee need not accept performance from the delegatee.

An assignee has a right to demand performance from the other original party to the contract (the obligor).

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is

A right cannot be assigned if the assignment will significantly alter the risks to, or the duties of, the obligor.

John enters into a contract with Katie's Laundry to move a suite of dryers from one of Katie's locations to another. John subsequently transfers this duty to Loren. Loren is

Mark and Nancy enter into a contract for the sale of Mark's apartment for which Nancy agrees to pay $100,000. Nancy assigns her right to buy the apartment to Owen. Owen is

If a statute expressly prohibits assignment, the particular right in question cannot be assigned.