Exam 14: Third Party Rights and Discharge

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

In an assignment, the assignee obtains only those rights that the assignor had.

If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is​

Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If the duties under this contract are discharged like those under most contracts, the duties will be

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

The rights of a third party beneficiary under a contract vest if the third party materially alters his or her position in detrimental reliance on the contract.

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​

A-One Landscapers, Inc., owes Friendly Finance Company $5,000. A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban's property. Un­der the contract, Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One's debt to Friendly Finance is paid. A-One performs as promised, but Suburban does not pay Friendly Finance. Can Friendly Finance succeed in a suit against Suburban? Why or why not?

Courts may imply conditions from the purpose of a contract or from the intent of the parties.

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

The most common way to discharge one's contractual duties is by breach of contract.

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