Exam 15: Third Party Rights

An assignee obtains only those rights that the assignor originally had.

The party receiving the assignment is the assignee.

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested.

Harry assigns his rights under a contract with Irma to his college roommate, Jake. Neither Harry nor Jake notifies Irma of the assignment. The assignment

Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue

Music Masters Inc. and Nina enter into a contract for Nina to write a dozen songs for which Music Masters agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, the assignor is

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

Delegation is prohibited when the duties are personal in nature.

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.