Exam 17: Third Party Rights

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

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is

Heather and Genice agree that Genice can satisfy her debt to Heather by paying the money directly to Fava (to whom Heather owes a debt).The designation of this contract as a third party beneficiary contract is determined by the intent to benefit

Privity of contract is the principle under which contracting parties alone traditionally had rights and liabilities under their contract.

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

The rights under a contract for personal service normally can be assigned.

Xtra Finance Company is a creditor beneficiary in a deal that involves Yvon and Zack.Xtra,like most creditor beneficiaries,is

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly.Reba later transfers her duty under the contract to Troy.Reba is

A right to receive damages on a breach of a contract for a sale of goods may be assigned.

Evergreen Landscapers,Inc.,owes Friendly Finance Company $5,000.Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.Under the contract,Suburban promises to pay Friendly Finance the amount that will be due Evergreen until Evergreen's debt to Friendly Finance is paid.Evergreen performs as promised,but Suburban does not pay Friendly Finance.Can Friendly Finance succeed in a suit against Suburban Why or why not

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Fiorella and Midwest Agri-Ship,Inc.,enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest.Due to schedule conflicts,Midwest contacts Hybrid Crop Transport Company,to which Midwest "assigns all rights under the contract." This transfer is

No special form is required to create a delegation of duties.

If a contract does not require that performance be rendered directly to a third party,the third party may be considered an incidental beneficiary.

The assignment of the same contract right to two different parties results in their "splitting the difference."

Tanya attempts to free herself from the duties of her contract with Drew by telling Drew to find someone else to perform them.This is

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

Privity of contract refers to the privacy that contracting parties should maintain with respect to their contract.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer

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