This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Ch. 19 REV IEW Dr. Deborah Pomeroy BLaw 2361 S10 Ch 19: 3 rd Party Rights to Contracts [I will probably display the diagram we used in class during the exam, but you may want to use it while you study as well. Also, the examples in your class notes may be particularly helpful in understanding this chapter] PR IV I TY OF CONTRACT This chapter considers the extent to which NON-CONTRACTING PARTIES have rights in or to a K. Because a K represents an agreement between the parties who made it, only these parties have “ privity of K ” and therefore rights and duties under the K. HOWEVER , the common law recognizes T HREE EXCEPT IONS which apply to 3 RD parties: 1. Assignment of Rights (AOR) 2. Delegation of Duties (DOD) 3. 3 rd Party Beneficiary (3PB) Contracts 1 Obligor = person obligated to perform a duty under a K. Obligee = Person to whom an obligation or duty under a K is owed. Assignor (Obligee) = Party assigning K rights to a 3 rd party Assignee = Party receiving the assignor’s rights I. Assignment of Rights (AOR) : A transaction whereby an Obligee transfers or ASSIGNS his/her rights in an existing K (and thus becomes the “Assignor” ) to some third party (3P) (the “Assignee” ). --As a consequence of the AOR, the Assignor’s K rights are extinguished , and the Assignee may demand from the Obligor any performance due under the K to the Assignor (original Obligee)....
View Full Document
This note was uploaded on 09/24/2011 for the course BLAW 2361 taught by Professor Bible during the Spring '08 term at Texas State.
- Spring '08
- Business Law