Ch12 Third Parties and Contracts Flashcards Preview

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Flashcards in Ch12 Third Parties and Contracts Deck (53):
1

Person not party to contract but whom parties intended to benefit.

Involving a Third Party: Third-Party Beneficiary

2

Third-party can enforce contract against promisor.

Involving a Third Party: Third-Party Beneficiary

3

Termination of a new contract and substitution of a new one with same terms but a new party.

Involving a Third Party: Novation

4

New obligor is solely liable.

Involving a Third Party: Novation

5

Conveyance of rights in a contract to a person not a party.

Involving a Third Party: Assignment

6

Assignment of rights depends on their nature and terms of the contract.

Involving a Third Party: Assignment

7

Transfer of duties without rights.

Involving a Third Party: Delegation

8

Delegated party is fully liable.

Involving a Third Party: Delegation

9

Assignment and delegation can be specified in the contract.

Involving a Third Party: Delegation

10

No noticed needed for assignment to be effective.

Notice of an Assignment.

11

Generally, law gives priority in the order the assignments were made.

Notice of an Assignment.

12

Made by either by operation of law or act of parties.

Form of the Assignment

13

If original contract is written, assignment must be written.

Form of the Assignment

14

Transfers all rights, title, or interested held by assignor to assignee.

Effect on Assignment

15

The assignor is the true owner of the right.

Warranties of the Assignor

16

The right is valid and subsisting at the time the assignment is made.

Warranties of the Assignor

17

There are no defenses available to the debtor which have not been disclosed to the assignee.

Warranties of the Assignor

18

Contract obligating or entitling two or more people together to performance.

Joint Contracts

19

Two or more people individually agree to perform obligation.

Several Contracts

20

Two or more people bound jointly and individually.

Joint and Several Contracts

21

This type of contract arises when two or more people individually agree to perform the same obligation even though the individual agreements are contained in the same document.

Several

22

This type of contract obligates or entitles two or more people together to performance.

Joint

23

Even if a contract may be assigned, there may be some _________ requirements that must be met to make sure the assignment is effective.

Technical

24

A person to whom the promisee owes obligation, which is discharged if the promisor pays. (Two words)

Creditor Beneficiary

25

This is the transfer of duties.

Delegation

26

A novation does not need to be in writing, nor must it be ____________.

Expressed

27

When one assigns rights under a contract to an assignee for value, the assignor makes how many implied warranties?

Three

28

A contract creates both rights and ____________.

Obligations

29

This is the termination of a contract and substitution of a new one with the same terms but a new party.

Novation

30

The party making the assignment.

Assignor

31

This type of beneficiary is a person who unintentionally benefits from the performance of a contract.

Incidental

32

The one to whom the right is transferred.

Assignee

33

This type of beneficiary is a third-party beneficiary for whom performance is a gift.

Donee

34

This means one party conveys the rights in a contract to another who is not a party to the original undertaking.

Assignment

35

A person not party to the contract but whom parties intended to benefit. (Three words)

Third Party Beneficiary

36

Person to whom contract right is assigned

Assignor

37

Conveyance of rights in a contract to a person not a party

Assignment

38

Person making an assignment

Assignor

39

A contract involves rights but not necessarily obligations.

False

40

If a person incidentally benefits by the performance of a contract, suit for breach or for performance will be successful.

False

41

Novation can be implied from the parties' actions.

True

42

An assignment means that one party conveys rights in a contract to another who is not a party to the original deal.

True

43

Whether rights may be assigned depends upon their nature and the terms of the contract.

True

44

Notice must be given to the other party in order to make the assignment effective between the assignor and the assignee.

False

45

A delegating party remains fully liable under a contract.

True

46

If Rochon and Bailey both sign a contract "I promise...", that binds them jointly and severally.

True

47

A delegation relieves the delegating party of all liability under the contract.

False

48

A person to whom the promissee owes an obligation or duty that will be discharged to the extent that the promisor performs the promise is called the ________ beneficiary.

Creditor

49

A/n ________ beneficiary is one to whom the promisee owes no legal duty but to whom performance is a gift, such as the beneficiary named in a life insurance contract.

Donee

50

The party making the assignment is the ________; the one to whom the right is transferred is the ________.

Assignor, assignee

51

When an assignment is made by acts of the parties, it:

may be either written or oral.

52

_______ __ ___ ______ include the right is valid and existing at the time the assignment is made.

Warranties of the assignor

53

When two or more persons enter into a contract with someone else, the contract may be joint, several, or joint and several. What determines the type of contract?

the intention of the parties