Exam 14: Operation of Contracts

Randy and Donald were property developers, and they decided to construct a condominium in a certain neighborhood. Jim, who owned a chain of restaurants, heard of this agreement and opened a new restaurant in the same neighborhood even before the condominium construction began. However, the plan for the condominium was not approved by the state authorities, and the project was cancelled. Jim suffered losses as a result, but he had no rights in the contract because he was a(n):

A person who agrees in a contract to perform a particular task may generally delegate this task to someone else and can transfer responsibility for getting it done.

An example of a party to a personal-service contract is a musician.