Chapter 17

Question 1

Traditionally only original party’s had rights in contracts. This was called

Answer 1

Privity of contract

Question 2

Rights that cannot be assigned

Answer 2

The assignment is prohibited by statues

2. The contract is personal
3. The assignment significantly changed the risk or duty of the obligor
4. The contract prohibits assignment

Question 3

Contract cannot prohibit assignment of ….

Answer 3

A contract cannot prevent an assignment of the right to receive funds

2. The assignment of rights in real estate
3. The assignment of negotiable instruments
4. In a contract for the sale of goods, the right to recoeve damages for breach of contract or of a account owed

Question 4

All duties can be delegated unless

Answer 4

1. preformance depends on the obligor’s personal skills or talents or special trust has been placed in the obligor
2. Preformance by a third party will materially vary from that expected by the obligee
3. The contract prohibits delegation

Question 5

What can be delegated if the contract prohibits delegation?

Answer 5

No duties can be delegated

Question 6

What if a contract prohibits assignment ?

No rights can be assigned except

Answer 6

1. Right to receive funds
2. The contract is for personal services
3. Rights to negotiable instruments
4. rights to damages for breach of sales contract or payments under a sale contract

Question 7

When an assignment has taken place what is the effect on the rights of the original party

Answer 7

On a valid assignment, effective immediately the original party no longer has any rights under the contract