Exam 17: Third Persons and Contracts

When a lease is assigned, the assignee becomes the sole obligor for rent payments, and the original lessee is discharged from the lease.​

Janet Jones sold the assets and liabilities of her coin-operated laundry to Kevin Katz for $10,000.The assets of the business included all of the washers and dryers.The liabilities included the amounts still owing on seven new dryers, which had been purchased recently from Dryer Company under an installment contract.Katz agreed to make the installment payments on the new dryers as they came due.After Katz failed to make an installment payment when it was due, Dryer Company sued Jones.Jones claimed she no longer was liable.How will the court decide?​

An obligor may delegate his or her duties to perform under a contract when the:​

An assignment, if otherwise valid, takes effect the moment it is made.​

An assignment is valid only if:

An assignee of a contract can bring suit on the contract only in the name of the assignor.

Bruce is a donee beneficiary to a life insurance contract if he is listed as the beneficiary.

The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.​

Unless language or circumstances indicate the contrary,  a general assignment is:​

Walker Meeks is currently a party to two contracts.On the first contract, he has agreed to paint a portrait of a gentleman riding a horse.This portrait is for the wall of the gentleman's study.The gentleman chose Meeks for his realism in portraying the true feelings behind portrait models.Meeks' second contract is to paint the house of Sylvia Sneed.?Meeks is offered an employment contract for a large sum of money.He wishes to accept, but this would render him unable to complete the aforementioned contracts.Meeks delegates the painting of the portrait to his friend Bob, an impressionist, and delegates the painting of Sylvia's home to Ted, a professional house painter.?Neither the gentleman nor Sylvia intends to allow the delegation to occur.Comment on the probable outcome of the dispute.

Jones has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Jones' mother is a(n):​

When work is guaranteed by one who repairs a building, the owner, on selling the building, may assign the guarantee to the buyer.​

Which of the following duties would most likely not be delegable?​

An assignment is a transfer of duties, and a delegation is a transfer of rights.

Under the UCC, an assignment of all the assignor's rights under a contract generally is held to be both an assignment of rights and a delegation of duties.

A third-party beneficiary contract may be amended:​

Which of the following is not a third-party beneficiary contract?​

A professor owned a home next door to a very dilapidated, neglected home.John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property.The professor was delighted because the improvement of the Cataldo home was upgrading the neighborhood and raising the value of the professor's home.?After making the last required payment on the contract, John Cataldo became seriously ill and ultimately was taken to a nursing home for care.?When Wizard learned of Cataldo's illness and confinement, Wizard ceased work on the Cataldo home.Because the outside renovation work had not been completed, the premises began to return to its former rundown condition.The professor ultimately sued Wizard as a third-party beneficiary of the contract between Cataldo and Wizard.What is the probable outcome of the lawsuit?

The rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings.

A person entitled to receive money may generally assign that right to another person.