Exam 13: Third Party Rights and Discharge

Fact Pattern 13-1 (Questions 23-24 apply) 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 13-1.With respect to Mutual's duties,Neil's performance most likely

Fact Pattern 13-2 (Questions 25-26 apply) 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 13-2.Under the circumstances,with respect to damages,Chris can

Rural Development Corporation (RDC)and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is

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 generally

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

Super Toolmakers,Inc.,contracts to sell its business to True Hardware Corporation.Before either party has performed,rescission of this contract requires

On April 1,OK Contractors,Inc.,contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City.On May 1,Metro changes its zoning laws to prohibit the construction of a commercial building at that location.When the store is not built,Lo-Cost files a suit against OK.In this situation

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

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

A novation revokes and discharges a prior contract.

Any third party beneficiary to a contract who is not an intended beneficiary is incidental.

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

If a contract requires performance to the personal satisfaction of a party,the party must in all cases be personally satisfied.

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

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

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

Performance of an accord discharges an original contractual obligation.

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

The most common way to discharge a contract is by breach.