Chapter 17 Flashcards
(10 cards)
A contracting party’s transfer of the contract rights or duties to another person is an exception to the rule of privity of contract.
True
Once the obligor receives proper notice, only performance to the assignee can discharge the obligor’s obligation.
True
Following a transfer by a lender of a right to receive payments on a mortgage, the homebuyer must continue to make those payments to the original lender.
False
Emily is obligated under a contract to pay Jennifer $500. Jennifer assigns the right to receive the funds to Lauren. If Emily does not pay the debt, Lauren (the obligee) can:
enforce the payment in court
Mary and Nita enter into a contract for the sale of Mary’s apartment for which Nita agrees to pay $350,000. Nita assigns her right to buy the apartment to Owen. Owen is:
the assignee
A surgeon can delegate his or her contractual duty to operate on a certain patient because the rendering of medical services is not personal performance.
False
On a delegation of contract duties, the delegator is absolved from any liability for performance under the contract.
False
A third party’s right to control the details of performance of a contract indicates that the third party is an intended beneficiary.
True
Harry assigns his rights under a contract with Ivy to his college roommate, Jake. Neither Harry nor Jake notifies Ivy of the assignment. The assignment:
Will not be effective until notice is given to Ivy
If performance under a contract will vary materially on a delegation of duties to a third party from that expected by the obligee, the delegation is:
Prohibited
