Exam 17: Third Party Rights

Fact Pattern 17-1 Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. -Refer to Fact Pattern 17-1. Halfway through the project, Four-Square refuses to finish the job. The contract can be enforced against Four-Square by

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is

Merry Music Inc. and Nina enter into a contract for Nina to write six songs for which Merry Music agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, Nina is

Rachel and Stuart enter into a contract for the sale of Rachel's textbook at the end of the fall semester for which Stuart agrees to pay $75. Rachel wants to transfer her right to payment for the book to Terry. This transfer is

In a bilateral contract, a party who makes a promise that benefits a third party is a promisor.

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

No contract can prohibit delegation of the duties of the contract.

Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Allen

​Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be

All rights can be assigned with no exceptions.

An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested.

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Ilene and Jerry enter into a contract under which Ilene agrees to provide grounds keeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

There are no exceptions to the rule that any duty can be delegated.

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

A delegation relieves the party making it of the obligation to perform.

An intended beneficiary can sue directly to enforce a promisor's promise.

Alienation is a transfer of land ownership.

A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.

Both intended and incidental beneficiaries acquire legal rights in a contract.