BLAW 2301 Lecture Notes - Lecture 17: Security Interest, Lebron James, Contract
26 Jun 2018
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CH 17 THIRD PARTIES:
Third party beneficiary:
•A third party beneficiary is someone who was not a party to the contract but stands to benefit
from it
Intended Beneficiaries
–Intended beneficiary: May enforce a contract if the parties intended her to benefit. Has legal
right to sue for breach of contract.
First, she must show that the two contracting parties were aware of her situation and knew
that she would receive something of value from their deal. Second, she must show that
the promisee wanted to benefit her for one of two reasons: either to satisfy some duty owed or
to make her a gift.
Incidental Beneficiaries
–Incidental beneficiary: Someone who might have benefited from a contract between two
others but has no right to enforce that agreement. Ex: getting a pool, incidental beneficiaries
are neighbors, friends etc.
Assignment and delegation:
•Assignment: Transferring contract rights
•Delegation: Transferring contract duties
Assignment
•Ex: giving $200 per mnth dad to daughter direct deposit
–Assignor: The one making an assignment, dad
–Assignee: The one receiving an assignment, daughter
–Obligor: The one obligated to do something, bank
–Obligee: The one who has the obligation coming to her, dad first then daughter
What rights are Assignable?
•Any contractual right may be assigned unless assignment:
–(a) would substantially change the obligor’s rights or duties under the contract; or
–(b) *is forbidden by law or public policy; or
–(c) is validly precluded by the contract itself
•Substantial Change
–Assignment is prohibited if it would substantially change the obligor’s situation
–Assignment is prohibited when obligor has agreed to provide personal services, . If my lawyer
is providing me service in DWI case, I can’t assign the right to receive my lawyer’s service to my
friend who is also getting a DWI.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Third party beneficiary: a third party beneficiary is someone who was not a party to the contract but stands to benefit from it. Intended beneficiary: may enforce a contract if the parties intended her to benefit. Has legal right to sue for breach of contract. First, she must show that the two contracting parties were aware of her situation and knew that she would receive something of value from their deal. Second, she must show that the promisee wanted to benefit her for one of two reasons: either to satisfy some duty owed or to make her a gift. Incidental beneficiary: someone who might have benefited from a contract between two others but has no right to enforce that agreement. Ex: getting a pool, incidental beneficiaries are neighbors, friends etc. Assignment and delegation: assignment: transferring contract rights, delegation: transferring contract duties. Assignment: ex: giving per mnth dad to daughter direct deposit. Obligor: the one obligated to do something, bank.
