Exam 17: Third Parties Contract Rights

An underground water main burst in Manhattan and flooded the building where Acme Inc.has an electricity supply substation.A fire resulted and disrupted electric power for four days.This occurred during the biannual "Buyers Week," when merchandisers from around the world were in town to visit fashion showrooms and place orders for future seasons.Around 200 merchandisers brought suit against Acme.Some of the businesses had no direct contractual relationship with Acme.They argued that their lease agreements with their landlords,who were the direct contracting entities with Acme,obligated them to pay a share of the electricity expenses and therefore they could sue under the contract agreement between the landlords and Acme.Are the demands of the businesses with no direct contractual relationship with Acme justified?

Which of the following statements is true about assignment of contracts?

Annie buys a car from Bob's Motors.She then sells the car to Michael,who agrees to make the remaining payments Annie owes Bob's Motors.Bob's Motors is a creditor beneficiary of Annie,and can therefore recover the balance due only from her,and not from Michael.

The term delegation refers to the transfer of:

As a general rule,assignments that do not involve personal relationships or increase the promisor's burden are enforceable.

Assignees:

Ford owned an apartment complex and was converting the complex to a cooperative by selling individual units.Each purchaser was required to pay Ford an extra $30 per month for utilities,taxes,and insurance.Ford sold all his rights in the complex to Roberts and assigned the purchasers' contracts to him.Roberts failed to pay the applicable property tax,and Crowe,a purchasing tenant,sued him to compel payment of the tax.Roberts argued that in purchasing Ford's interest,all he bought was the right to collect the payments made by tenants and that he assumed no duties.Is Roberts liable for the property tax?

The transfer of rights under a contract is referred to as a(n)_____.

Employment contracts are generally assignable.

Zeta is contracted to perform a violin solo for Pat.Zeta assigns the contract to Roy.Which of the following statements is true about delegation of duty in this case?

The municipality of College Town enters into a contract with Wooster Inc.to have the town's roads repaired.Katie is a resident of College Town and will be considered a(n):

Susan wanted to give a diamond pendant to Lucy,her daughter.Susan entered into a contract with Andrew,a dealer who specializes in diamond jewelry.Susan had promised to pay him if he delivered the pendant to Lucy.Andrew withdrew from the contract and Lucy wanted to sue him.Which of the following statements is true in this scenario?

Edward owes Frank $100,payable in six months.Frank,who is leaving the country,gives his rights to the payment to Marge for $80.Which of the following is true about the scenario?

Public policy can prevent the delegation of duties.

Once a donee or creditor beneficiary has accepted a contract,the original parties:

Explain what types of contracts are assignable and name the types of contracts that are not assignable.

Who is a creditor beneficiary? Can he/she enforce a contract?

What is an implied guarantee?

A(n)_____ is a new,separate agreement by the promisee to release the original promisor from liability in exchange for a third party's agreement to assume the promisor's duties.

Unless an assignment agreement clearly indicates a contrary intent,courts today tend to interpret assignments as including a delegation of the assignor's duties.A promise on the part of the assignee to perform these duties: