Chpater 16 Flashcards Preview

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Flashcards in Chpater 16 Deck (10):
1

What is a "third party beneficiary"?

someone who was not a party to the contract but stands to benefit from it

2

Distinguish an "intended beneficiary" from an "incidental beneficiary".

intended= someone who may enforce a contract made between two other parties
incidental= someone who might have benefited from a contract between two others but has no right to enforce that agreement

3

Which type type can enforce a contract which benefits them even if they are not a party to the contract?

Intended beneficiary

4

What is a party allowed to assign under a contract?

a delegation of duties. a party may make an assignment and delegation simultaneously, transferring both rights and duties to a third party.
Any contractual agreement may be assigned unless assignment:
a) would substantially change the obligor's rights or duties under the contract
b) is forbidden by law or public policy
c) is validly precluded by the contract itself

5

What may a party seek to delegate under a contract?

Most duties are delegable. But delegation does not by itself relieve the delegator of his own liability to perform the contract
As long as the delegation of duties are not:
- violating public policy
- the contract prohibits delegation
- the obligee has a substantial interest in personal performance by the obligor

6

Does delegation relieve the delegating party of his.her liability/obligations under the original contract? Why?

No, -- unless the obligee agrees otherwise, delegation does not discharge the delegator's duty to perform

7

May a non- delegating party successfully object to delegation of a specific duty? When?

repudiated= he has formally notified the other side he will not perform his side of the contract

8

What is an assignment?

the transfer of the assignor's contract rights to the assignee

9

What is a delegation?

transfers the delegator's duties to the delegatee

10

What is a novation?

a three-way agreement in which the obligor transfers all rights and duties to a third party. The obligee agrees to look only to that third party for performance.