{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

THIRD PARTIES TO CONTRACTS_1

THIRD PARTIES TO CONTRACTS_1 - THIRD PARTIES TO CONTRACTS...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
THIRD PARTIES TO CONTRACTS
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Introduction Rights to enforce a contractual obligation by person not a party to contract Historically, privity required i.e., only party who had given consideration could enforce Two types of situations - Assignments, Third Party Beneficiaries
Image of page 2
Introduction (cont.) Distinguish by when rights acquired Third party beneficiary - rights acquired at time contract made as part of contract Assignment - Transfer (assignment) of rights after contract made In both situations, right of third party are derivative Third party has no greater rights than party to contract If party against whom enforcement is sought has defense to contract, e.g., breach, fraud, can use that defense against third party
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ASSIGNMENTS obligor obligee goods S B $$$$$ obligee obligor assignor A (assignee) Assignment - voluntary transfer of rights Valid assignment terminates rights of assignor and transfers those rights (and only those rights) to assignee
Image of page 4
“Assignability” Generally all contract rights may be assigned unless 1. Materially changes obligor’s duties - e.g. insurance 2. Highly personal rights - e.g. job, loan
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Assignability (cont.) 3. Prohibited by contract – Note: anti-assignment provision in contract generally considered to only prohibit delegation of duty (UCC § 2-210(2)) UCC §9-318 – Can’t prohibit assignment of right to payment 4. Prohibited by statute - e.g.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern