Exam 11: Third Party Rights and Discharge

A promise to perform under a contract is never absolute.

Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously.

Ron makes a contract with Stu that indirectly benefits Tim,although neither Ron nor Stu intended that result.Tim is

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is

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

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

Lon enters into a contract to mine limestone in Mica's quarry,sell it,and share the profits on its sale with Mica.If the duties under this contract are discharged like those under most contracts,the duties will be

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

All rights can be assigned.

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

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

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is

A novation revokes and discharges a prior contract.

An assignment of a negotiable instrument is generally prohibited.

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

Fact Pattern 11-2 Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. -Refer to Fact Pattern 11-2.Bell's repudiation is most likely

Fact Pattern 11-3 Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples. -Refer to Fact Pattern 11-3.When the market price for apples exceeds the price in the contract with Fresh Produce,Haruko decides not to deliver the apples.This

Most contracts are discharged by performance.

Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract.Flo's estate

Pam borrows $5,000 from Quality Auto Sales to buy a car.When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency.Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed.Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legiti?mately refuse to pay Rapid? Explain.