Exam 17: Third Parties Contract Rights

The transfer of duties under a contract is called an assignment.

The promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them.

If a promisor's performance will satisfy a legal duty that the promisee owes a third party,the third party is a(n)_____.

A creditor beneficiary:

Life insurance contracts give the insured the right to change the beneficiary,but only with the beneficiary's consent.

A creditor beneficiary has rights against the promisee,but not the promisor.

An incidental beneficiary can:

Lydia's father has named Lydia in his will as the inheritor of his farm.He has also named her as a beneficiary in his insurance policy.Lydia is:

GP Corp.had been contracted by the public services department of Kingston to install monitoring systems at all public places.This was to be done in two phases and the city had the right to terminate the contract.GP had plans to use a subcontractor,Rex,whom they usually hired for the last phases of projects executed by them.After two weeks of the work,the city of Kingston found that things were not going according to plan and terminated GP's contract.Under these circumstances:

To make a third party a donee beneficiary,making a gift of the contracted performance must be the promisee's primary purpose in contracting.