Exam 14: Third Party Rights and Discharge

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

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

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​

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation​

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

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is​

A novation requires the existence of a previous, valid obligation.

A material breach occurs when performance is substantial, but not complete.

Fact Pattern 14-1 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 14-1.If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is

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

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment​

An assignee has a right to demand performance from the obligor.

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

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is​

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Any breach discharges the nonbreaching party from the contract.

The assignment of the same contract right to two different parties automatically cancels both assignments.