Exam 18: Third Persons and Contracts

In general,an assignee stands:

A cause of action may not be assigned.

The rights of a third-party beneficiary always can be destroyed without that beneficiary's consent.

Walker Meeks is currently a party to two contracts.On the first contract,he has agreed to paint a portrait of a gentleman riding a horse.This portrait is for the wall of the gentleman's study.The gentleman chose Meeks for his realism in portraying the true feelings behind portrait models.Meeks' second contract is to paint the house of Sylvia Sneed. Meeks is offered an employment contract for a large sum of money.He wishes to accept,but this would render him unable to complete the aforementioned contracts.Meeks delegates the painting of the portrait to his friend Bob,an impressionist,and delegates the painting of Sylvia's home to Ted,a professional house painter. Neither the gentleman nor Sylvia intends to allow the delegation to occur.Comment on the probable outcome of the dispute.

When a lease is assigned,the assignee becomes the sole obligor for rent payments,and the original lessee is discharged from the lease.

An assignment is a transfer of rights,and a delegation is a transfer of duties.

A life insurance contract is a third-party:

In general,one may assign rights if that does not cause the obligor's duties to increase or change materially.

An incidental beneficiary is the same thing as a third-party beneficiary.

Unless language or circumstances indicate the contrary,a general assignment is:

An assignee of a contract can bring suit on the contract only in the name of the assignor.

If an obligor could successfully defend against a suit brought by the assignor:

Only written words that show an intention to transfer or assign will be given the effect of an assignment.

An obligor required to render a performance under a contract can transfer the duty to perform to another person whenever desired.

An assignment,if otherwise valid,takes effect the moment it is made.

A person who has a right to buy on credit can transfer that right to a close relative.

A professor owned a home next door to a very dilapidated,neglected home.John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property.The professor was delighted because the improvement of the Cataldo home was upgrading the neighborhood and raising the value of the professor's home. After making the last required payment on the contract,John Cataldo became seriously ill and ultimately was taken to a nursing home for care. When Wizard learned of Cataldo's illness and confinement,Wizard ceased work on the Cataldo home.Because the outside renovation work had not been completed,the premises began to return to its former rundown condition.The professor ultimately sued Wizard as a third-party beneficiary of the contract between Cataldo and Wizard.What is the probable outcome of the lawsuit?

An assignment is valid only if:

The making of an assignment __________ the assignor of any obligation of the contract.

An employer can assign to another employer the right to have an employee work.