Exam 15: Third-Party Rights and Discharge

Explain the difference between a condition precedent and a condition subsequent. Give an example of each.

An incidental beneficiary has no rights to enforce or sue under other people's contracts.

Harry's grandmother leaves him a house and a Rolls Royce in her will. What rights does Harry have, in the context of his new inheritance?

An obligee who transfers the right to receive performance is called an assignor.

Which of the following contractual duties CAN be delegated?

In a case of assumption of duties, the delegatee is not liable for nonperformance.

The English rule provides that the final assignment in time prevails, regardless of notice.

Which of the following is true of covenants and conditions?

A statute of limitations establishes the time period during which a lawsuit must be brought.

Condition precedent refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

If the conditions are met, a qualified promise becomes a covenant.

Approval clauses require that the assignee approve any assignment of a contract.

An obligor can raise any personal defenses he or she may have directly against an assignee.

Which of the following is true of third-party beneficiaries?

The party to whom the duty is owed is the delegatee.

The party to whom a duty is owed is the ________.

The right to sue another party for a violation of personal rights can be assigned.

What could the parties to a contract include in the language of the contract to indicate that the duties required cannot be delegated? Are such efforts to prevent delegation always effective?

An obligee who transfers the right to receive performance is called the ________.

A contract between a retailer and a supplier provides that payment is due upon delivery of goods by the supplier. The retailer's duty to pay and the supplier's duty to deliver constitutes ________.