Exam 16: Third Parties to Contracts

Unless otherwise provided by statute,an assignment may be oral.

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

Anita owes Brad $75,000.Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita.Brad delivers the signed statement to Glen six weeks before Brad dies.The assignment is:

Lynne is the intended beneficiary of a third-party contract.Her rights have vested.In an action by Lynne to enforce the promise,the promisor may assert the defense of:

Mr.Homayer hired Blake Painters to paint his house.Blake decides it has too many jobs and delegates the duties to the Andrews Company.Andrews does a poor job,and drips paint on the Homayers' flowers and windows.Mr.Homayer:

In a novation,the delegator is discharged and the third party becomes directly bound upon his promise to the obligee.

Though contractual duties generally are delegable;a delegation will not be permitted if the nature of the duties is personal in that the obligee has a substantial interest in having the delegator perform the contract.

The law governing assignments arises solely from the common law of contracts.

After an assignment,only the assignee has a right to the obligor's performance.

Which of the following is correct with regard to successive assignments of the same right?

The right to property other than money,such as goods or land,is not assignable.

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but no new or additional rights.

Notice of an assignment:

Some states have statutes which prohibit an employee from assigning his future wages.

Professor Dought has a life insurance policy on his own life that provides that in the event of his death,his mother will receive the proceeds.Professor Dought's mother is a(n):

An assignor normally guarantees that the obligor will pay the assigned debt.

The UCC imposes a writing requirement on all assignments of $500 or more.

Generally,rights under an option contract are not assignable.

A(n)____ is a third party who obtains possible benefits but no rights under a contract.