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7 Cards in this Set
- Front
- Back
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Third Party Rights
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One who is not a direct party to a particular contract - normally does not have rights under that contract. RIGHTS IN A CONTRACT = ASSIGNED
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Delegation - Duties
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The transfer of a contractual duty to a third party. The party delegating the duty (the delegator) to the third party (the delegatee) is still obliged to perform on the contract should the delegatee fail to perform.
DUTIES IN A CONTRACT = DELEGATED |
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Third Party Beneficary
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When the original parties to the contract agree that the contract performance should be rendered to or directly benefit a third person.
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Assignment - Rights
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The act of transferring to another all or part of one’s contractual rights to a third party.
RIGHTS IN A CONTRACT = ASSIGNED |
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Vesting
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the rights have taken effect and cannot be taken away. Until these rights have done this, the original parties to the contract the promisor and the promisee - can modify or rescind the contract without the consent of the third party.
1. The third party materially changes his or her position in justifiable reliance on the promise. 2. The third party brings a lawsuit on the promise. 3. The third party demonstrates her or her consent to the promise at the request of the promisor or promisee. _______________________________________________________ 1. Cliff = based on 5 years and after the 5 years you get all the money from you and your employer. 2. Percentage = 1st year = 20%, 2nd year = 40%, 3rd Year = 60%, 4th Year = 80%, and 5th year = 100% from your employer. |
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Intended beneficiary
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The third party has legal rights and can sue the promisor directly for breach of the contract.
- Has the right to control the details of performance - Designated a beneficiary in the contract - Can sue to enforce the contract |
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Incidental beneficiary
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Benefit that this receives from a contract between two parties is unintentional. Because the benefit is unintentional, this word cannot sue to enforce the contract.
- Has no rights in the contract - Benefits from a contract but whose benefit was not the reason for the contract |
