BUS311_chapter_06

Consider the following example example 67 peter

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Unformatted text preview: obligee’s consent, unless the nature of performance is personal. This is partly because the liability is not delegated. Consider the following example: Example 6.7. Peter contracts to paint Harry’s house for $3,000. The house is to be painted beige. Peter delegates to Paul. Paul paints the house pink. Peter is liable to Harry. Basically, the delegator remains liable unless the obligee gives him a release of some type. Note that even if Harry agrees expressly to the delegation, that does not mean Harry is releasing Peter from liability. What of Paul, the delegatee? Does he have any liability for the pink house? The answer is no, unless he received consideration for undertaking the delegation. In that case, Paul is actually breaching a contract with Peter, and since Harry was an intended beneficiary of that contract, either Peter or Harry could sue. Example 6.8. Peter contracts to paint Harry’s house, then he pays Paul $1,500 to do the work for him. Paul paints the house the wrong color. Because Paul received consideration, if Harry sues Peter, Peter could sue Paul. If Harry chooses, he could bypass Peter and sue Paul as a third-party beneficiary of the Peter-Paul contract. If Peter were to simultaneously assign and delegate the contract with Harry to Paul, the assignment portion serves as consideration for Paul’s undertaking the delegation. However, if the duty is of a personal nature, or if the obligee was relying on individualized qualities of the delegator, the delegation would be invalid. Example 6.9. Peter contracts to paint Harry’s portrait for $3,000. Peter now realizes he’s taken on too many commissions, and he delegates to Paul, who is also an excellent artist. Harry need not accept performance from Paul, since he was relying on Peter’s personal style as an artist. Of course, if Harry chooses, he could consent to the delegation, in which case Harry is actually forming a new contract. Example 6.10. Stephen contracts with Angela Attorney for representation in his upcoming trial. Although Angela can delegate resea...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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