Exam 7: Third-Party Rights and Discharge

Luziva Co.enters into a contract to deliver 200 coats to Buyer.Luziva determines that it cannot honor the contract,so it assigns the contract to Maniva Co.Maniva Co.delivers the specified 200 coats to Buyer per the contract.

Buyer 1 and a seller agree on the sale of a new truck.Buyer 1 decides that she does not need the truck,but Buyer 2 agrees to purchase the truck.If Buyer 2 breaches this contract,which of the following statements is true,assuming this that is a novation?

The bank lends money to Jane to buy a car.After several months,Jane sells the car to Dan.Dan agrees to pay off the loan to the bank.If Dan fails to pay the loan,then:

Fresh Air Contractors agree with a bar owner to install a smoke-removal system to remove cigarette smoke from the air.Prior to the start of the work,the city where the bar is located passes an ordinance prohibiting all smoking in bars.The bar owner can:

The parties to a contract can include an "antidelegation clause" if they so chose.

Is it ever wise for persons such as an artist or interior decorator to enter into a contract that depends on the personal satisfaction of the other party? Why would someone enter into such a contract given the considerable risks? How could one of these persons minimize the risk if the other party demands a personal satisfaction clause?

Barney's assignment of his rights to be insured may not be assigned to Betty,as the assignment would materially alter the risk and duties of the insurance company.

Sally owns 50 acres of vacant land near a large growing university.Sally is elderly and is planning to move out of town to live near her children.Sally plans to donate most of this land to the university in order to build badly needed dorms.She wants to sell a portion of the land,and finds someone who is interested in building a small shopping center.Because the university plans to build housing for about 5,000 students,a shopping center would certainly be successful.Bob purchases the land and begins building the shopping center.Sally showed Bob the agreement that she was entering into with the university regarding the donation of the land.It stated that the university would use the land only for building dorms and that there would be dorms housing 5,000 students within five years.The university built two high-rise dorms and then came under criticism from the local community fearing that 5,000 students would be too many in that space.In addition,revised projections showed a lower rate of enrollment growth in the coming years.The university decided to build housing for only 2,000 students on this land.In addition,they built 1,000 additional units on another parcel of land on the other side of campus.Bob's shopping center is unable to attract tenants because there are not enough potential customers nearby.It is known that he would have no trouble attracting tenants if the housing for all 5,000 students was built on the adjoining land.Bob feels the university has wronged him.Who can he sue and on what basis? If he cannot sue either Sally or the university,indicate why not.

The American rule regarding successive assignment of rights is the majority rule.

A condition concurrent is one that requires the occurrence of an event before a party is obligated to perform a duty under the contract.

Nor formalities are required for a valid assignment of rights.

A buyer and seller enter into an agreement to sell a mobile home and lot.Before the deed can be signed,the mobile home is destroyed by a tornado.Which of the following doctrines would most likely allow the buyer to avoid his contractual obligations?

Paragon Studios hires Harry Ford to play Indiana Bones in one of its new movies.Harry decides that he cannot fulfill this contract so he assigns his rights and delegates his duties under the contract to Tom Smellnik,another famous actor and friend of Harry's.Which of the following best describes this situation?

Ralph Co.enters into an agreement to sell 500 computers to Buyer.Ralph decides that it cannot fulfill its contract,so it transfers all its rights and duties under the contract to George Co.

On Alice's recent birthday she received a card from her father saying that he was giving her a new desk and table to be made by a local furniture maker.They would be ready in about a month.A week later,without Alice's knowledge,her father talked to the furniture maker about rescinding the contract for the table.The furniture maker agreed to this.About a month after her birthday,the furniture maker delivered the desk.When Alice asked about the table,she learned about the rescission.As she was putting items into the desk,she noticed that the workmanship was poor.Among other problems,two drawers would not operate properly and the finish had several flaws.Alice wants to sue both the furniture maker and her father for the defective desk and the table.Discuss her options.

Why should a donee beneficiary be able to sue for the benefit that she was to receive,even though someone to whom a promise of a gift is made directly is not able to sue to enforce the promise of a gift?

Bill may assign his expected right to receive his inheritance from his grandmother Irma to John,his best friend.

An accord and satisfaction discharges the original contract upon the formation of the accord.

The state of an individual party being in a contract is known as privity of contract.

The English rule regarding successive assignment of rights states that the first assignment in time prevails,regardless of notice.