Third Party Rights

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Questions

Question 1

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?

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Question 2

What is the term for the transfer of contractual rights to a third party, which occurs after the original contract is made?

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Question 3

In a contract, if a party transfers their contractual duties to a third party, what is this action called?

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Question 4

In a contractual assignment, what are the respective terms for the party assigning the rights and the party receiving the rights?

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Question 5

Under what circumstances may a right NOT be assigned?

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Question 6

What is the general rule regarding the delegator's liability after a duty has been delegated to a delegatee?

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Question 7

What is a contract in which the parties intend for the performance to directly benefit a third person called?

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Question 8

Which of the following scenarios describes a donee beneficiary?

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Question 9

Under what circumstance have the rights of an intended third party beneficiary vested?

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Question 10

What is the key factor courts focus on when determining if a third party is an intended beneficiary or an incidental beneficiary?

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Question 11

If a party receives an unintentional benefit from a contract between two other parties, what is that party's legal status?

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Question 12

In the case of Revels v. Miss America Organization, why was Rebekah Revels considered an incidental beneficiary of the franchise agreement between MAO and MNCPO?

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Question 13

When a contract includes a general phrase such as 'I assign the contract', how do courts typically interpret this wording?

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Question 14

If an assignee's rights are subject to the defenses that the obligor has against the assignor, what does this mean in practice?

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Question 15

What is the primary purpose of an exception to anti-assignment clauses for the right to receive monetary payments?

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Question 16

Is it legally necessary for an assignee to give notice of an assignment to the obligor to establish the validity of the assignment?

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Question 17

If a duty is personal in nature, involving special trust or personal skill, can it be delegated?

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Question 18

Which of the following does NOT need to occur for the rights of a third party beneficiary to vest?

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Question 19

In 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?

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Question 20

What type of beneficiary is a person who benefits from a contract made for the express purpose of giving them a gift?

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Question 21

A party who transfers his or her contractual rights to a third party is known as the:

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Question 22

If a contract for the sale of goods prohibits assignment, can the right to receive damages for a breach of that contract still be assigned?

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Question 23

What happens if an obligor, who has not been notified of an assignment, renders performance to the original obligee (the assignor)?

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Question 24

A duty to perform cannot be delegated when:

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Question 25

If 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:

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Question 26

In 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?

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Question 27

A duty to perform a contract can generally be delegated, except when:

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Question 28

What is the consequence if the rights of an intended third party beneficiary have vested?

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Question 29

A 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?

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Question 30

In a delegation of duties, who is the party to whom the duties have been delegated?

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Question 31

What is the term for a party to a contract to whom a duty or obligation is owed?

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Question 32

If a contract contains a clause that prohibits assignment, which of the following rights can typically still be assigned?

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Question 33

A 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?

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Question 34

If 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?

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Question 35

The historic 1859 case of Lawrence v. Fox established the rule that which type of third party beneficiary can sue the promisor directly?

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Question 36

What is the legal term for a party to a contract who has an obligation to perform a duty?

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Question 37

When 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?

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Question 38

What is the primary difference between an assignment and a third party beneficiary contract?

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Question 39

When a court must determine if a third party is an intended beneficiary, what is a factor that strongly indicates this status?

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Question 40

If a contract has an anti-delegation clause, can the duties still be delegated?

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Question 41

When a valid assignment of rights is made, what happens to the rights of the assignor?

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Question 42

If 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?

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Question 43

What is the primary difference between a creditor beneficiary and a donee beneficiary?

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Question 44

Which of the following is NOT a valid exception to a contractual clause that prohibits assignment?

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Question 45

If 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?

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Question 46

When an insurance company's performance under a policy is assigned to a new property owner, the assignment is often ineffective because it:

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Question 47

The modern view on classifying third party beneficiaries, as adopted by the Restatement (Second) of Contracts, primarily distinguishes between which two types?

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Question 48

If 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?

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Question 49

When does the right of a third party to sue a promisor for breach of contract arise?

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Question 50

Which of the following describes a situation that would prevent a duty from being delegated?

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