Exam 17: Third Party Rights

Fact Pattern 17-B1 (Questions B15-B18 apply) Able Contractors,Inc.,enters into a contract with Beau to repair,rebuild,and remodel Coastal Marina & Boardwalk,using products from Delta Lumber & Marine.Eatwell Café is next to Coastal Marina. -Refer to Fact Pattern 17-B1.Delta Lumber will realize a profit from the sale of products to Bayside to remodel Coastal Marina.Delta Lumber is

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

An assignee has a right to demand performance from the obligor.

Fact Pattern 17-B1 (Questions B15-B18 apply) Able Contractors,Inc.,enters into a contract with Beau to repair,rebuild,and remodel Coastal Marina & Boardwalk,using products from Delta Lumber & Marine.Eatwell Café is next to Coastal Marina. -Refer to Fact Pattern 17-B1.Coastal Marina is

Richly Merchandise,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the contract cannot be assigned because

Uri and Victor enter into a contract by which Uri promises to deliver business cards,advertising banners,and other marketing materials to Victor.Uri later transfers his duty under the contract to Wren.Uri is

Devon and Edmond enter into a contract for the closing of a sale of Devon's recording studio.When Edmond's schedule conflicts,he asks Ferdie to perform his duties at the closing.This transfer of duties is

Fact Pattern 17-B1 (Questions B15-B18 apply) Able Contractors,Inc.,enters into a contract with Beau to repair,rebuild,and remodel Coastal Marina & Boardwalk,using products from Delta Lumber & Marine.Eatwell Café is next to Coastal Marina. -Refer to Fact Pattern 17-B1.The value of Eatwell Café's property will increase after Coastal Marina store is refurbished.Eatwell Café is

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month.Laramie cannot transfer this duty

A transfer of contract duties to a third party is an assignment.

Motors Repair Company contracts to sell a car to Nikki for $3,500.Nikki gives Motors Repair a worthless check for the price.Nikki assigns her right to the car to Opie.If Motors Repair refuses to deliver the car to Opie and Opie sues,can Motors Repair raise Nikki's fraud as a defense against delivery of the car to Opie Explain.

Mai is a third party beneficiary under a contract between Novia and Otis.Novia and Otis can modify or rescind their contract without Mai's consent

Bobbie enters into a contract with Claire,who agrees to paint Bobbie's studio apartment for $500.Claire is the

The rights of a third party beneficiary under a contract vest if the third party brings a lawsuit on the promise.

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

In most cases,a contract that prohibits its assignment cannot be assigned.

Banks may not assign their loan contracts to other firms.

The assignment of the same contract right to two different parties automatically cancels both assignments.

Qiana has the right under a contract with Runway Retail,Inc.,to buy the retailer's clothing overstock.Qiana's sale of this right to Sade's Style House is

Merry Music Inc.and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her.Nayda transfers her right to payment under the contract to Omni Artists Agency.In the transfer of rights,Nayda is