Exam 17: Rights of Third Parties

A contract may be enforced by a third-party beneficiary if that beneficiary:

An assignee can notify the obligor of the assignment at any point of time that he/she desires.

Barry and Andrew contract for the sale of 100 widgets (goods)from Barry to Andrew for $1,000.The contract contains a clause prohibiting assignment of "the contract." Nonetheless,Andrew assigns "the contract" to Smith.Is there a valid assignment of contract rights here? Is there a delegation of duties?

The sources of assignment law today are the common law of contracts and provisions of the UCC.

Which of the following is true of delegation?

Anne induces Ben's consent to contract under duress.Anne later assigns her rights under the contract to Carl.Ben may assert the doctrine of duress against Anne as a ground for avoiding the contract.

Amelia contracts to have her portrait painted by Hamilton for $10,000.Hamilton assigns the contract to Drew,another artist.Has there been a valid delegation of duties here? Why or why not?

An obligor:

Most states have passed statutes prohibiting or regulating a wage earner's assignment of future wages.

As a general rule,members of the public are held to be _____ of contracts entered into by their municipalities or other governmental units in the regular course of carrying on governmental functions.

Ted Nix purchased two acres of land from Sally Pine.Nix paid 15 percent at the closing and gave his note for the balance secured by a 30-year mortgage.Five years later,Nix found it increasingly difficult to make payments on the note and finally defaulted.Pine threatened to accelerate the loan and foreclose if Nix continued in default.Pine told Nix either to get the money or obtain an acceptable third party to assume the obligation.Nix offered the land to Quick Co.for $4,000 less than the equity Nix had in the property.This was acceptable to Pine and at the closing,Quick paid the arrearage,executed a new mortgage and note,and had title transferred to its name.Pine surrendered Nix's note and mortgage to him.The transaction in question is a(n):

Martha purchases a book from Just Books on credit and later sells the book to her friend,Christina.Christina in turn sells the book to David,who agrees to pay the balance to Just Books.Who is the creditor beneficiary in this exchange?

Which of the following is a type of substituted contract in which the obligee agrees to discharge the original obligor and to substitute a new obligor in his/her place?

What Uniform Commercial Code (UCC)section indicates that it is presumed that an assignment includes a delegation under contract law?

Mike has a three-year lease on the apartment he occupies.He has lived there one year.He now wants to leave and go to Aspen,Colorado to be a ski instructor.However,Mike's landlord will not release him from the lease,and threatens to sue him if he breaks his lease.Mike finds Paul to take over the last two years of the lease,but Mike is worried that Paul might cause damage or in other ways inflict loss and that he,Mike,might be held financially responsible.In order to assure Mike that he will be completely discharged from all obligations under his lease,Mike should attempt to bring about:

What is the term for "performs the duty under a proper delegation"?

In order for an assignment to be valid,the assignee must give some consideration to the assignor.

The appointment of another person to perform a duty under a contract is called a(n):

With regard to an assignment,the person to whom the right has been transferred is called the:

The transfer of a right under a contract is called assignment.