Exam 15: Third-Party Rights and Discharge

The ________ is an objective test that applies to commercial contracts and contracts involving mechanical fitness.

The promisee is the contracting party who agrees to confer performance for the benefit of the third person.

The term ________ refers to a third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor.

A(n) ________ refers to a contracting party who directs that the benefit be conferred on another person.

The aggrieved party loses the right to sue if the lawsuit is not brought within the ________.

________ is a clause in a contract in which the parties specify certain events that will excuse nonperformance.

What does the American Rule for successive assignments provide?

Terms such as "sell," "convey," and "give" indicate the intent to transfer a contract right.

A(n) ________ is an original creditor who becomes a beneficiary under the debtor's new contract with another party.

Unilateral rescission of a contract constitutes a breach of that contract.

Which of the following is true of an assignment of a right?

Condition subsequent exists when the parties to a contract must render performance simultaneously.

Anti-assignment clause in a contract prohibits the assignment of rights under the contract.

Contracts for the provision of personal services are generally not assignable.

Explain assignment of rights.

Lionel Richmond is a soccer player who has a six-year contract with the Christshire United soccer team. Two years into the contract, he meets with an accident which results in the complete amputation of his right leg. On what basis is Richmond discharged from further performance of the contract?

What happens when an obligor does not get a notice of assignment?

Under the possession of tangible token rule, the first assignee who receives delivery of the tangible token prevails over subsequent assignees.

A covenant is an unconditional promise to perform.

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called an incidental beneficiary.