1 / 8

Chapter 16 Contracts: Third Party Rights

Chapter 16 Contracts: Third Party Rights . Learning Objectives. What is the difference between an assignment and a delegation? What rights can be assigned despite a contract clause expressly prohibiting assignment? What factors indicate a third party is an intended beneficiary?. Assignments.

lynne
Télécharger la présentation

Chapter 16 Contracts: Third Party Rights

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 16Contracts: Third Party Rights

  2. Learning Objectives • What is the difference between an assignment and a delegation? • What rights can be assigned despite a contract clause expressly prohibiting assignment? • What factors indicate a third party is an intended beneficiary?

  3. Assignments • Transfer of contractual rights to a 3rd party. • 3rd party is called the assignee. • The assignee has the right to demand performance from the other original party (Obligor) to the contract. • Cannot Assign rights for personal services or when obligor’s performance changes.

  4. Delegations • Transfer of duties to a 3rd party (Delegatee) by Delegator. • Delegatee owes duty to original party in contract. • Delegator is still liable for performance of duty.

  5. Intended vs. Incidental Beneficiaries • What factors do courts consider in determining whether a 3rd party is an intended or incidental beneficiary: • Whether performance is rendered directly to 3rd Party? • Whether 3rd Party has right to control details of performance? • Whether 3rd Party is expressly designated as beneficiary under the contract?

  6. Intended Beneficiaries • 3P Intended Beneficiary Original parties to K intend at the time of contracting that the contract performance directly benefit a 3rd party. After rights vest, 3P can sue for breach. • 3P Creditor Beneficiary: Can sue debtor directly. • 3P Donee Beneficiary: gift is enforceable.

  7. When Intended Beneficiary’s Rights Vest • A Third Party Intended Beneficiary has the right to sue. • Her Right to Sue Vests When: • 3rd Party manifests Assent to the contract. • 3rd Party materially alters her position in detrimental reliance of contract. • When conditions for vesting occur.

  8. Incidental Beneficiaries • Third Party Incidental Beneficiaries receives an unintended benefit. • Incidental beneficiary has no right to sue.

More Related