Answers for Quiz 3

1. Flora is the promisor. Terry is the promisee. Pat is the beneficiary.

2. Sidney is the assignor, Banco is the assignee and Chris is the obligor.

3. Lester is the delegating party. Ralph is the delegated party. Billy's Bar is the obligee.

4. If he is an intended beneficiary under the contract.

5. No. The promisee may raise or waive that claim as she wishes. She is permitted to enter a contract that benefits the third party as a gift, even if she owes nothing to the third party.

6. If assignment is forbidden by contract, (with some exceptions), if assignment violates a public policy, if assignment materially changes the other party's (obligor's) duty, if assignment materially increases the burden on the obligor, if it materially increases the risk to the obligor, if it materially impairs the obligor's chance of obtaining return performance, and /or if assignment materially reduces the value of return performance.

7. Courts interpret a clause prohibiting assignment as prohibiting only delegation of duties, not assignment of rights, unless the clause or context clearly indicates the contrary. Courts refuse to enforce clauses prohibiting assignment of a right to collect damages for breach of contract. Courts, also refuse to grant specific performance of the clause prohibiting assignment. Thus, the assignment remains effective. The aggrieved party is limited to damages for breach of the promise not to assign the rights.

8. If the contract prohibits delegation, if delegation goes against public policy, or if the other party (obligee) has a substantial interest in having a particular person, (the delegated party) perform or control performance of the duties.

9. Yes. Unless, there was a novation. If the obligee agreed to release the delegating party and look only to the delegated party for performance, she has waived any right to sue the delegating party if the delegated party breaches.

 

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