Exam 17: Third Persons and Contracts

An assignment is a transfer of duties, and a delegation is a transfer of rights.

An obligor may delegate his or her duties to perform under a contract when the:

Intended beneficiaries and creditor beneficiaries can be the same person.

The right to file a legal claim may not be assigned.

A person entitled to receive money may generally assign that right to another person.

The party making an assignment is called the:

In general, an assignee stands:

Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop-N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is:

The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.

An assignee's rights are the same as those that had been possessed by the assignor.

A third-party beneficiary contract may be amended:

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

Which of the following duties would most likely not be delegable?

A third-party beneficiary:

An assignment of royalties to a song:

The rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings.

The making of an assignment relieves the assignor of any and all obligations existing under the original contract.

A professor owned a home next door to a very dilapidated, neglected home. John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property. The professor was delighted because the improvement of the Cataldo home was upgrading the neighborhood and raising the value of the professor's home.?After making the last required payment on the contract, John Cataldo became seriously ill and ultimately was taken to a nursing home for care.?When Wizard learned of Cataldo's illness and confinement, Wizard ceased work on the Cataldo home. Because the outside renovation work had not been completed, the premises began to return to its former rundown condition. The professor ultimately sued Wizard as a third-party beneficiary of the contract between Cataldo and Wizard. What is the probable outcome of the lawsuit?

In general, one may assign rights if that does not cause the obligor's duties to increase or change materially.

A third person automatically has the status of an intended third-party beneficiary regardless of the parties' intentions at the time of contracting.