Third Party Rights

Question 1

A) Third Party Beneficiary

Answer 1

1) Two people have a K
2) Third Party will benefit

Question 2

B) Incidental Beneficiary

Answer 2

1) Accidentally benefited for the formation of the K
2) Never has rights under the K

Question 3

C) Intended Beneficiary

Answer 3

1) Original parties intended to benefit a third party
2) May have rights under the K
(a) Vests when Intended Beneficiary is:
(i) Informed of rights & accepts OR
(ii) Third Party Learns of rights & Relies
(b) One Rights have vested, the Intended Third party beneficiary has the same rights as original parties
3) Intended beneficiary does not need to be named

Question 4

D) Assignment and Delegation

Answer 4

(b) One party transfers obligation to someone else
(i) Generally VALID

Question 5

2) Novation

Answer 5

A release of the original Party from the K

Question 6

3) Anti-Assignment clause:

Answer 6

(a) The assignment is still valid, but
(b) The original party liable for money Damages ($$)
(c) **Exceptions:
(i) Not valid if it would MATERAILLY ALTER RISK OF PERFORMACNE (scared)
(ii) Unique or personal service K cannot be transferred