Exam 12: Third Party Rights and Discharge

Fact Pattern 12-1 Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol. -Refer to Fact Pattern 12-1.Carol is

Leonardo contracts to install automatic watering troughs in Kendall's dairy barn.Leonardo 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

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

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

Pam borrows $5,000 from Quality Auto Sales to buy a car. When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency.Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed.Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legiti-mately refuse to pay Rapid? Explain.

The only way that a party can discharge a contract is by performance.

A life insurance contract involves an intended beneficiary.

Rocko owes Sybil $1,000 for yard work Sybil performed for Rocko.The money is due on May 1.On April 30,Rocko goes to the bank to get the money and discovers that the bank will be closed until May 2.Rocko

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

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.Jack

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

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Ellen's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,no wine is delivered that day,and no one from Grapes & Vines tells Ellen.On the morning of May 2,Ellen buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Ellen's residence.She refuses tender.Grapes & Vines sues her for breach of contract.How is the court most likely to rule?