Exam 17: Third Party Rights

​Phillip assigns his rights under a contract with Maria to his college roommate, Owen. Neither Phillip nor Owen notifies Maria of the assignment. The assignment

An insurance policy is an example of a right that can be assigned.

A special form is required to create a delegation of duties.

An assignment of rights in real estate often cannot be prohibited.

Giving notice is legally necessary to establish the validity of an assignment.

Revenue & Sales Corporation and Software, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500. Software transfers the right to payment under the contract to CreditLine LLC. CreditLine is

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue

If a contract requires that performance be rendered directly to a third party, the third party is an intended beneficiary.

​Gavin takes out an insurance policy on her car. Gavin can assign his policy to a third party

A creditor beneficiary is any third person who receives a benefit from a contract even though that person's benefit is not the reason the contract was made.

The rights of a third party beneficiary under a contract do not vest if the third party materially changes his or her position in justifiable reliance on the promise.