CH 13 - Third Party Rights and Discharge Flashcards
(26 cards)
ASSIGNOR
Party that transfer rights.
ASSIGNMENT
Transfer of contract rights.
ASSIGNEE
Party receiving the rights.
DELEGATION
Transfer of contract duties (More risky, more dangerous)
BONA FIDE PURCHASER (BFP)
Person who has purchased an asset for a stated value
DELEGATOR
Party who transfers the duties / obligations
DELEGATEE
Party who receive the duties / obligations
THIRD PARTY CREDITOR BENEFICIARY (3PCB)
Stand to a benefit due to a debt owed.
Rights starts when you discover the benefit.
You become 3PCB when an assignment.
THIRD PARTY DONEE BENEFICIARY
Except gift intent.
Rights starts when discover the benefit ($) + change position
INCIDENTAL BENEFICIARY
MORON!!!
No rights at all.
Ex. Peruvian restaurant next to Home Depot
CONDITION
Event that creates/ ends a contract rights + duties
CONDITION PRECEDENT
Condition in a contract that must be met before.
CONDITION CONCURRENT
Conditions that must occur or be performed at the same time, mutually dependent.
CONDITION SUBSEQUENT
Condition that if occurs terminates the contract
SUBSTANTIAL PERFORMANCE
Close enough to contract purpose (Construction industry)
OBJECTIVE SATISFACTION CONDITIONS
Facts, experts, technical. High quality standard
SUBJECTIVE SATISFACTION CONDITIONS
Based on taste + opinion
BREACH
Breaking a contract
MATERIAL BREACH
Major and significant. Too bad that you don’t even have to pay for it.
TRIVIAL BREACH
Minor, Insignificant.
Ex. Crayola Crayon CEO House
ANTICIPATORY REPUDIATION/ BREACH
Executory contract = Unfinished
One side either can’t or won’t finish
Another side can 1) Sue when due, 2) Sue Now, OR 3) Discussion - Type of negotiation
NOVATION
Substitution, prior agreement, of a new contract for an old one, with the rights under the old one being terminated.
OBJECTIVE IMPOSSIBILITY
Nobody can do it. 5 min round trip to California.
SUBJECTIVE IMPOSSIBILITY
You just don’t want to do it.
