Exam 3- Word list

Exam 3- Word list - 342 - WORD AND PHRASE LIST III...

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342 - WORD AND PHRASE LIST III Delegation of duties – what does this mean and what are the contractual implications? - Duty (Obligation) - A promise to do something for someone that is not a right - Delegation occurs when a party to a contract (a delegator) transfers her duty to perform to a third party who is not part of the original contract (a delegatee) -The delegate is then required to complete the delagator’s contractual obligation to the oblige (the third party to whom the duty is owed.) ** The Delegator is not relieved of their duty to perform by making a delegation (The obligation to complete the duty still rests on their shoulders)** Ex. If Tom contacts Bill to deliver a box for him. Bill then delegates that duty to Sue; If Sue fails to complete that duty (deliver a box), Bill is still responsible for completing it. Duties that Cannot Be Delegated -Duties that are personal in nature Ex. Someone hire you to paint a picture- You cannot delegate because they specifically hired you for your skills, and expertise. **Can delegate if it is something like painting a house** -Duties for which the delegatee’s performance will vary significantly from the delegators. Ex. An NBA player could not delegate his playing duties to Brian. Assignment of rights - what does this mean and what are the contractual implications? - Assignment occurs when a party to a contract (an assignor) transfers her rights to a contract to a third party (an assignee.) --- The assignor gives an assignee the right to collect what was contractually agreed upon in the first contract ***When an assignor transfers her rights to an assignee, the assignor legally gives up all rights she previously had to collect on the contract.***
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Ex. Lisa agrees to sell her car to Luke for $8,000; Lisa then assigns her right to receive the payment ($8,000) to Kelly. Kelly, though not part of the initial contract has the right to receive payment from Luke and can request that he do so. Lisa is absent from the contract and cannot request that Luke pay her. When can you not assign rights? -When they are personal in nature Ex. Could not assign your rights to a scholarship to a friend -Rights whose assignment would increase the obligor’s risk or duties. TEST Q Ex. Ted enters a contract with an Insurance Company (B). B agrees to provide Ted with insurance-So Ted has the right to insurance. Ted CANNOT go and assign the rights of his insurance policy to Bill; doing this would increase the risk of the Insurance company without them knowing. What is the relationship between rights vs. duties in a contract? - Rights- refer to the ownership of the contract. If you have the rights to a contract to are the one standing to benefit (receive the consideration) if the contract is fulfilled. -
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Exam 3- Word list - 342 - WORD AND PHRASE LIST III...

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