Exam 15: Third Party Rights

An unconditional assignment of rights in a contract will extinguish the rights of the assignor.

Robert enters into a contract with Claire.Claire agrees to paint Robert's living room for $500.Claire is the

Will owes Jenny $1,000.Brad owes Will $1,000.Will unconditionally assigns his rights to Jenny.Will's right to the $1,000 is then

A contract cannot prevent the assignment of the right to receive funds.

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.Carol is

Evan's sale of rights he has under a contract with Federated Retail,Inc.,to buy the retailer's clothing overstock is

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

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves

A transfer of contract duties to a third party is an assignment.

Regional Steel,Inc.,and Overland Transport Company enter into a con?tract. Smooth Oil Corporation,which will indirectly benefit from the deal,is prevented from having rights under the contract by the principle of

McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is

An incidental beneficiary can sue directly to enforce a promisor's promise.