A Ch. 18

Front 1

Privity

Back 1

Relationship between obligor and obligee

Front 2

Obligor

Back 2

made promise and must perform promise

Front 3

Obligee

Back 3

promised something and must receive promise

Front 4

ex) Obligor owes $1000 to obligee

Back 4

Obligee wants $ to go to someone else. Obligee become assignor. Now Obligor owes the assignee $1000

Front 5

No consideration is required

Back 5

Obligee can assign anyone but only one person. All rights are assignable.

Front 6

ex) Debitor owes $100,000 to creditor. Creditor does not want to deal with it so they sell the amount for $80,000 to a 3rd party who now has to collect.

Back 6

Creditor assigns right to the $100K to the third party. Debitor now owes $100K to the 3rd Party

Front 7

Notice to obligor to pay 3rd party

Back 7

Obligee must notify for the 3rd party

Front 8

More about Assigning Contracts (4)

Back 8

-Obligee's rights are extinguished and can only be exercised by assignee.
-Has to be in contract that it is not assignable.
-No writing required for assignment unless falls under statute of fraud or set forth in contract.
-Cannot assign expectation interest.

Front 9

Delegation of duty (3)

Back 9

-Obligor (delegator) delegates duty (obligation) to delegate.
-Obligor remains liable for duties.
-Certain duties are not delegable such as personal service contracts.

Front 10

ex) Landlord has 1yr lease with tenant. Tenant leaves and subleases to 3rd party.

Back 10

Tenant has assigned the right to possession to the 3rd party, and delegated the duty to pay the tenant . If 3rd party doesnt pay, landlord will still sue tenant because they are the obligator. They are incharge of paying. Tenant may sue 3rd party.

Front 11

Third Party Beneficiaries

Back 11

Contract is made between parties for the benefit of a 3rd party. Life insurance.

Front 12

Life Insurance

Back 12

Owner pays insurance premium to company. Owner dies, insuranace pay beneficiaries. 3rd party cna sue if insurance does not pay.