Exam 11: Third Party Rights and Discharge

Diners Restaurant signs an agreement with Eagle Bank to borrow $10,000 at 20 percent interest.Later,the state legislature passes a law lowering the maximum permissible rate of interest from 15 per?cent.Diners' best argument for avoiding payment to Eagle is that

Alienation is a transfer of the ownership of land.

An assignment of a negotiable instrument is generally prohibited.

Complete performance occurs when conditions in a contract are fully satisfied.

To be enforceable,a delegation of duties must be in writing.

Anticipatory repudiation discharges a contract.

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

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

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly.Reba later transfers her duty under the contract to Troy.Reba is

Commercial Shipping,Inc. ,and Dock Services Corporation enter into a contract under which Commercial agrees to pay Dock to load Commercial's trucks.Dock transfers its duty to load the trucks to East Harbor Transport Company.Dock is

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

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

An "as?signment of all rights" absolves the assignor of all liability under the contract that created the rights.

Most contracts are discharged by rescission.

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

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.

A party's refusal to perform his or her contractual obligations is a rescission.

After a contract is made,an unforeseen event may make performance impossible and discharge the contract.

Manny wants to transfer his right to buy $400 of pistachio nuts under a contract with Nila to Opie.To ensure that the transfer of the right is valid,Manny must