Third Party Rights
50 questions available
Questions
What is the legal principle that traditionally states that only the parties who have entered into a contract have rights and liabilities under that contract?
View answer and explanationWhat is the term for the transfer of contractual rights to a third party, which occurs after the original contract is made?
View answer and explanationIn a contract, if a party transfers their contractual duties to a third party, what is this action called?
View answer and explanationIn a contractual assignment, what are the respective terms for the party assigning the rights and the party receiving the rights?
View answer and explanationUnder what circumstances may a right NOT be assigned?
View answer and explanationWhat is the general rule regarding the delegator's liability after a duty has been delegated to a delegatee?
View answer and explanationWhat is a contract in which the parties intend for the performance to directly benefit a third person called?
View answer and explanationWhich of the following scenarios describes a donee beneficiary?
View answer and explanationUnder what circumstance have the rights of an intended third party beneficiary vested?
View answer and explanationWhat is the key factor courts focus on when determining if a third party is an intended beneficiary or an incidental beneficiary?
View answer and explanationIf a party receives an unintentional benefit from a contract between two other parties, what is that party's legal status?
View answer and explanationIn the case of Revels v. Miss America Organization, why was Rebekah Revels considered an incidental beneficiary of the franchise agreement between MAO and MNCPO?
View answer and explanationWhen a contract includes a general phrase such as 'I assign the contract', how do courts typically interpret this wording?
View answer and explanationIf an assignee's rights are subject to the defenses that the obligor has against the assignor, what does this mean in practice?
View answer and explanationWhat is the primary purpose of an exception to anti-assignment clauses for the right to receive monetary payments?
View answer and explanationIs it legally necessary for an assignee to give notice of an assignment to the obligor to establish the validity of the assignment?
View answer and explanationIf a duty is personal in nature, involving special trust or personal skill, can it be delegated?
View answer and explanationWhich of the following does NOT need to occur for the rights of a third party beneficiary to vest?
View answer and explanationIn the case Midwestern Indemnity Co. v. Systems Builders, Inc., why was the subcontractor Varco-Pruden considered an intended third party beneficiary of the contract between the owner and the general contractor?
View answer and explanationWhat type of beneficiary is a person who benefits from a contract made for the express purpose of giving them a gift?
View answer and explanationA party who transfers his or her contractual rights to a third party is known as the:
View answer and explanationIf a contract for the sale of goods prohibits assignment, can the right to receive damages for a breach of that contract still be assigned?
View answer and explanationWhat happens if an obligor, who has not been notified of an assignment, renders performance to the original obligee (the assignor)?
View answer and explanationA duty to perform cannot be delegated when:
View answer and explanationIf a contract is made to pay the debt of a third person, and the promisee owes that third person a debt, the third person is known as a:
View answer and explanationIn the Martha Graham case (Case 16.1), the court found that an oral assignment of dance copyrights was valid. What was the essential element that made the oral assignment enforceable?
View answer and explanationA duty to perform a contract can generally be delegated, except when:
View answer and explanationWhat is the consequence if the rights of an intended third party beneficiary have vested?
View answer and explanationA local government contracts with a construction company to repave a public road. A nearby restaurant owner, who was not a party to the contract, expects to see increased business due to the improved road. If the construction company breaches the contract, can the restaurant owner sue to enforce it?
View answer and explanationIn a delegation of duties, who is the party to whom the duties have been delegated?
View answer and explanationWhat is the term for a party to a contract to whom a duty or obligation is owed?
View answer and explanationIf a contract contains a clause that prohibits assignment, which of the following rights can typically still be assigned?
View answer and explanationA third party's rights in a contract vest when they materially change their position in justifiable reliance on the promise. Which legal doctrine does this principle reflect?
View answer and explanationIf a duty is delegated, and the delegatee enters into a contract with the delegator where they promise to perform, the obligee can sue the delegatee directly. What is this situation called?
View answer and explanationThe historic 1859 case of Lawrence v. Fox established the rule that which type of third party beneficiary can sue the promisor directly?
View answer and explanationWhat is the legal term for a party to a contract who has an obligation to perform a duty?
View answer and explanationWhen a contract is for personal services, such as a famous artist being hired to paint a mural, can the artist delegate this duty to another, equally skilled artist?
View answer and explanationWhat is the primary difference between an assignment and a third party beneficiary contract?
View answer and explanationWhen a court must determine if a third party is an intended beneficiary, what is a factor that strongly indicates this status?
View answer and explanationIf a contract has an anti-delegation clause, can the duties still be delegated?
View answer and explanationWhen a valid assignment of rights is made, what happens to the rights of the assignor?
View answer and explanationIf a contract to paint a house is delegated by the original painter to a second painter, and the second painter fails to perform, who can the homeowner sue?
View answer and explanationWhat is the primary difference between a creditor beneficiary and a donee beneficiary?
View answer and explanationWhich of the following is NOT a valid exception to a contractual clause that prohibits assignment?
View answer and explanationIf the original parties to a contract reserve the right to change the beneficiary in the contract language, can they do so even after the beneficiary's rights have technically vested?
View answer and explanationWhen an insurance company's performance under a policy is assigned to a new property owner, the assignment is often ineffective because it:
View answer and explanationThe modern view on classifying third party beneficiaries, as adopted by the Restatement (Second) of Contracts, primarily distinguishes between which two types?
View answer and explanationIf a delegator expresses an intention to make a delegation of duties, is a special form or the use of the word 'delegate' required for it to be effective?
View answer and explanationWhen does the right of a third party to sue a promisor for breach of contract arise?
View answer and explanationWhich of the following describes a situation that would prevent a duty from being delegated?
View answer and explanation