Exam 16: A: Third Party Rights

An incidental third party beneficiary can sue directly to enforce the contract.

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son,Nero,as the bene?ficiary.This is

Peri,a world famous musician and composer,agrees to give ten piano les?sons to Quinn in exchange for $1,000.Peri's attempt to transfer her contract duties to Roth,an in?experienced pianist,will probably be

When the parties to a contract agree that its performance should directly benefit a third person,the third person is an intended third party beneficiary.

Linus and Marlena agree that Linus will fix Marlena's roof in exchange for $8,000.Linus spends half of the amount due under the contract to acquire the materials for the job from Natural Roofing Supplies.Natural Roofing is

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 under this contract to Timber Logging Company.Timber is

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

The vesting of contractual rights in a third party terminates the right of the original parties to change the contract.

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him.This is

In a bilateral contract,a party who makes a promise that benefits a third party is a promisor.

A creditor beneficiary benefits from a contract in which one party promises another to pay a debt that the promisee owes to a third party.

An assignee's rights are free of the defenses that the obligor has against the assignor.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $200,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund.This is

When rights under a contract are assigned unconditionally,the rights of the assignor are extinguished.

An intended third party beneficiary can sue a promisor directly for breach of contract.

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a debt owed by Esther to Gladys.Gladys is

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

If a contract requires that performance be rendered directly to a third party,the third party is an incidental beneficiary.

Oral assignments are prohibited.