Exam 18: Third Party Rights

App Developers,Inc. (ADI),enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm. To fulfill the contract,ADI hires Max and ten other student interns. With respect to the contract,Max is

Ozzie contracts for the sale of 500 shares of stock in Premium Quality,Inc.,to Ray,with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is

A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor.

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

Uri and Victor enter into a contract by which Uri promises to deliver business cards,advertising banners,and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

An insurance policy is an example of a right that can be assigned.

Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of Forrest's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This transfer is

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

James and MaryElise enter into a contract. James agrees to mow MaryElise's yard every week for the summer. MaryElise is

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

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.

The assignment of the same contract right to two different parties automatically cancels both assignments.

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies. -Refer to Fact Pattern 18-1. Delta will realize a profit from the sale of prod-ucts to Four-Square to remodel Carol's store. Delta is

The person to whom rights in a contract are assigned is the assignor.

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

Contract duties are not assigned-they are delegated.

A delegation relieves the party making it of the obligation to perform.