Chapter_16_Outline - Chapter 16: Third Party Rights 1....

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Chapter 16: Third Party Rights 1. Privity of Contract: a contract that is a private agreement between the parties who have entered into it, and traditionally these parties alone have rights and liabilities under the contract. a. Third party: one who is not a direct party to a particular contract 2. Assignments and Delegations a. Assignment : the transfer of contractual rights to a third party i. Assignor: the party assigning the rights to a third party ii. Assignee: the party receiving the rights iii. Obligee: the person to whom a duty, or obligation is owed iv. Obligor: the person who is obligated to perform the duty b. An assignment or a delegation occurs after the original contract was made. c. When rights under a contract are assigned unconditionally, the rights of the assignor are extinguished. i. The third party (assignee) has a right to demand performance from the other original party to the contract d. The assignee’s rights are subject to the defenses that the obligor has against the assignor. e. In general, an assignment can take any form, oral or written. i. It is more difficult to prove that an oral assignment occurred, so it is practical to put all assignments in writing. 1.
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Chapter_16_Outline - Chapter 16: Third Party Rights 1....

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