Exam 15: Third Party Rights

Fact Pattern 15-1 (Questions 29-31 apply) Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol. -Refer to Fact Pattern 15-1.The value of Eatery's property will increase after Carol's store is remodeled.Eatery is

John promises to paint Kay's house in exchange for Lila's promise to plant trees on John's property.This is

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

Pat,a world famous musician and composer,agrees to give ten piano les?sons to Quinn in exchange for $1,000.Pat's attempt to delegate his con?tract to Ruth,an in?experienced pianist,will probably be

In a bilateral contract,the obligee has a right to require the other party to perform some task.

An obligor is a person to whom a duty is owed.

An assignment of rights in real estate often cannot be prohibited.

Phil and Mike enter into a contract that expressly prohibits delegation.Phil is the obligor and Mike is the obligee.Mike delegates his duties to Alex.Phil

If a contract does not require that performance be rendered directly to a third party,the third party is an intended beneficiary.

Vested is the condition in which rights have taken effect and cannot be taken away.

The vesting of contractual rights in a third party will always prevent the origi?nal parties to a contract from modifying it.

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

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

An "as?signment of all rights" absolves the assignor of all liability under the contract that created the rights.

In an assignment,the party receiving the rights is known as the assignor.

Dale and Elin sign a contract that intentionally confers a benefit on Federica.Federica's rights under the contract will vest

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

If a contract benefits a third party only incidentally,the third party will not have the power to enforce the contract.

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders.When Faye's schedule conflicts,she asks Gudren to serve Faye's coffee and pastries at the meeting.This transfer of duties is

Commercial Shipping,Inc.,and Dock Services Corporation enter into a contract for Dock to load Commercial's trucks for which Commercial agrees to pay Dock.Dock transfers its duty to load the trucks to East Harbor Transport Company.Dock is