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The parties to a contract who have a legal obligation to perform the duties specified in their contract are called what?
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The transfer of contractual rights its called?
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Chapter 15
Third-Party Rights and Discharge
| Question | Answer |
|---|---|
| The parties to a contract who have a legal obligation to perform the duties specified in their contract are called what? | Privity of Contract |
| The transfer of contractual rights its called? | assignment of rights or just assignment |
| The party who owes a duty of performance is called what? | Obligor |
| A party who is owed under a contract is called what? | Obligee |
| An obligee who transfers the rights to receive performance is called what? | Assignor |
| The party to whom the right of a contract has been transferred is called what? | Assignee |
| The assignee in a contract rights transfer can again transfer the rights to a person called what? | subsequent assignee or subassignee |
| When an assignor makes an assignment of a right under a contract, the assignee is under a duty to notify the obligor of what two things? | 1) the assignment has been made 2) performance must be rendered to the assignee |
| If the assignee fails to provide this to the obilgor, the obligor may continue to render performance to the assignor, who no longer has a right to it | notice of assignment |
| Some contracts contain this that prohibits the assignment of rights under the contract | anti-assignment clause |
| Some contracts contain a clause that the obligor approve any assignment of a contract. What's this called? | approval clause |
| Unless otherwise agreed, the parties to a contract can generally transfer the performance of their duties under the contract to other parties. This transfer is called what? | delegation of a duty or just delegation |
| An obligor who transfers his or her duty is called what? | delegator |
| The party to whom the duty of a contract is transferred is called what? | delegetee |
| What are two situations where a duty of contract cannot be transferred? | 1) Personal service contracts calling for the exercise of personal skills, discretion, or expertise 2) Contracts whose performance would materially vary if the obligor's duties were delegated. |
| Sometimes a contract contains this that allows the obligee to sue the delegatee and recover damages. | Assumption of duties |
| This clause in a contract indicates that duties cannot be delegated. | Anti-delegation clause |
| This occrus when there is both a transfer of rights and duties under a contract. | assignment and delegation |
| When parties enter into a contract, they can agree that the performance of one of the parties should be rendered to or directly benefit a third party | intended third-party beneficiary |
| This is a contract when a person enters into it with the intent to confer a benefit or gift on an intended third party this is called what? | donee beneficiary contract |
| This is the contracting party who directs that the benefit be conferred on another. | Promisee |
| This is the person who agrees to confer performance for the benefit of the third person. | promisor |
| This person is the third party in a donee beneficiary contract to whom the benefit is to be conferred. | Donee Beneficiary |
| This is a contract where a third party buys the debt from another obligee, and promises the obligor to pay the original obligee the amount owed. | creditor beneficiary contract |
| In a creditor beneficiary contract the original creditor is referred to as what? | creditor beneficiary |
| This is when the parties to a contract unintentionally benefit a third party when a contract is performed. The third party is called what? | incidental beneficiary |
| This is an unconditional promise to perform in a contract. | Covenant |
| This type of contractual promise is not as definite as a covenant. | Conditional Promise |
| In a conditional promise contract, the promisor's duty to perform or not perform arises only if the condition does or does not occur. | Condition |
| If a contract requires the occurrence (or nonoccurence) of an event before a party is obligated to peform a contractual duty, this is called what? | condition precedent |
| This is a subjective test that applies if the performance involves personal taste and comfort (e.g., contracts for interior decorating, contracts for tailoring clothes) | personal sanctification test |
| This is an objective test that is used to judge contracts involving mechanical fitness and most commercial contracts. | reasonable person test |
| This exists when there is a condition in a contract which provides that the occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing duty to perform. | Condition Subsequent |
| This arises when the parties to a contract agree to render performance simultaneously. | Concurrent conditions |
| This condition arises if the parties expressly agree on it. | Express condition |
| This is a condition that can be implied from the circumstances surrounding an contract and the parties conduct. | implied-in-fact-condition |
| This is when parties of a contract decide to rid themselves of their duties. | discharge |
| this requires parties to enter into a second agreement that expressly terminates the first one. | Mutual rescission |
| The contract that revokes and discharges an existing contract is called what? | substituted contract |
| This agreement substitutes a third party for one of the original contracting parties. | Novation agreement |
| This is an agreement whereby the parties agree to accept something different in satisfaction of the original contract. | accord and satisfaction |
| this occurs if a contract becomes impossible to perform. | impossibility of performance or objective impossibility |
| The parties may agree in a contract that certain events will excuse nonperformance of the contract. These are called what? | force majeure clauses |
| this excuses performance if an unforeseeable event makes it impractical for the promisor to perform. | commercial impracticability |
| When a debtor is relieved of legal liability to pay debts under bankruptcy. | discharge |
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