Chapter 17

Question 1

Privity of contract

Answer 1

The relationship that exists between the promisor and the promisee of a contract

Question 2

Assignment

Answer 2

The act of transferring to another all or part of ones rights arising under a contract

Question 3

Delegation

Answer 3

The transfer of a contractual duty to a third party. The party delegating the duty (the delegator) to the third party (the delegatee) is still obligated to perform on the contract should the delegatee fail to perform

Question 4

Assignor

Answer 4

The person who assigns contract rights

Question 5

Assignee

Answer 5

The person to whom contract rights are assigned

Question 6

Obligee

Answer 6

One to whom an obligation is owed

Question 7

Obligor

Answer 7

One who owes an obligation to another

Question 8

Rights that cannot be assigned

Answer 8

1. The assignment is prohibited by statute
2. The contract is personal
3. The assignment significantly changes the risk or duties of the obligor
4. The contract prohibits assignment

Question 9

Exceptions to assignment being prohibited

Answer 9

1. assignment of the right to receive funds
2. Assignment of rights in real estate
3. Assignment of negotiable instruments
4. In a contract for the sale of goods, the right to receive damages for breach of contract or payment of an account owed even though the sales contract prohibits assignment

Question 10

Delegator

Answer 10

One who delegates his or her duties under a contract to another

Question 11

Delegatee

Answer 11

One to whom contract duties are delegated by another

Question 12

Duties that cannot be delegated

Answer 12

1. When the duties are personal in nature
2. When performance by a third party will vary materially from that expected by the obligee
3. When a contract prohibits delegation

Question 13

Third party beneficiary

Answer 13

One for whose benefit a promise is made in a contract but who is not a party to the contract

Question 14

Intended beneficiary

Answer 14

A third party for whose benefit a contract is formed; an intended beneficiary can sue the promisor is such a contract is breached

Question 15

Intended beneficiaries

Answer 15

• who can sue to enforce contracts made on their benefit
  Creditor beneficiary- benefits from one party promising to pay a debt that the promisee owes to a third party

Donee beneficiary- when a contract is made for the express purpose or giving a gift to a third party the third party can sue the promisor directly to enforce the promise

Question 16

Incidental beneficiaries

Answer 16

Who cannot sue bc the benefit was unintentional

- a third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed