Exam 11: Third Party Rights and Discharge

Nick and Roberta contract for the sale of computer equipment,reserving the right to alter a particular provision in the contract.The rights of any third party beneficiary of that contract are

Superb Construction,Inc. ,contracts to build a store for Tasty Confection Company,with Tasty's payment due on June 1.On June 1,Tasty's bank is closed,and for this reason,Tasty claims it cannot pay Superb on time.In this situation

Xavier enters into a contract to operate a Yummy Yogurt franchise,which Yummy agrees to support as long as Xavier maintains his business license.Yummy's duty to perform is

An assignment of an insurance policy can be prohibited.

An "assignment of all rights" absolves the assignor of all liability under the contract that created the rights.

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.

Frank and AgriShip,Inc. ,enter into a contract for AgriShip to transport a silo of soybeans for which Frank agrees to pay.When AgriShip's schedule conflicts,the firm contacts Hybrid Transport Company,to which AgriShip "assigns all rights under the contract." This transfer 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

An event must be certain to occur to constitute a contract condition.

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

Anything less than substantial performance is a material breach of contract.

A condition subsequent terminates a party's promise to perform.

Fact Pattern 11-1 Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments. -Refer to Fact Pattern 11-2.Under the circumstances,with respect to damages,Chris can

Building Restoration,Inc.(BRI),enters into a contract to refurbish an old train depot for Casual Dining,Inc. ,to open as Eat Up Restaurant.If BRI completes most of the work promised in the contract,its performance will be

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

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Mona and Nero want to discharge their contract by executing and performing a new agreement.They can best accomplish this by

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

Fact Pattern 11-1 Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments. -Refer to Fact Pattern 11-1.With respect to Mutual's duties,Neil's performance most likely

Performance of an accord discharges an original contractual obligation.