Business Law Chapter 15

Front 1

Privity of contract

Back 1

The state of two specified parties being in a contract.

Front 2

Assignment

Back 2

The transfer of conteractual rights by an obligee to another party

Front 3

Assignor

Back 3

An obligee who transfers a right

Front 4

Assingee

Back 4

A party to whom a right has been transferred

Front 5

Assignment of a future right

Back 5

A person cannot assign a currently nonexisting right he expects to have in the future.

Front 6

Privity of contract

Back 6

The state of two specified parties being in a contract.

Front 7

Assignment

Back 7

The transfer of conteractual rights by an obligee to another party

Front 8

Assignor

Back 8

An obligee who transfers a right

Front 9

Assingee

Back 9

A party to whom a right has been transferred

Front 10

Assignment of a future right

Back 10

A person cannot assign a currently nonexisting right he expects to have in the future.

Front 11

Assigment of a legal action

Back 11

The right to sue another party for a violation of personal rights cannot usually be assigned.

Front 12

Contract where an assignment would materially alter the risk

Back 12

CAnnot be assigned.

Front 13

What has to happen for an assignment to tka place?

Back 13

The assignee has a duty to notify the obligor that 1. the assignment has been made and 2. performance be rendered to the assignee.

Front 14

Anti assignment clause

Back 14

A clause that prohibits the assignment of rights under the contract.

Front 15

Approval clause

Back 15

REuire the obligor approve the assignemtn of a contract.

Front 16

Delegation of duties

Back 16

A transfer of contractual duties by an obligor to another party for performance.

Front 17

Delegator

Back 17

An obligor who has transferred his or her duty.

Front 18

Delegatee

Back 18

A party to whom the duty has been transferred.

Front 19

Duties that can't be transfered

Back 19

1. personal service contracts calling for the exercise of personal skills, discretion, or expertise.
2. Contracts whose performance would materially very if the obligor's duties were delegated.

Front 20

Assumption of duties

Back 20

A situation in which a delegation of duties contains the term assumption, I assume the duties, or other similar language. In such a case, the delegatee is legally liable to the obligee for nonperformance.

Front 21

Anti delegation clause

Back 21

A clause that prohibits the delegation of duties under the contract.

Front 22

Intended third-party beneficitary

Back 22

A third party who is not in prividty of contract but who has rights under the contract and can enforce the contract against the promisor.

Front 23

Donee beneficiary contract

Back 23

A contract entered into whith the intent to confer a benefit or gift to an intended thier party

Front 24

Creditor beneficiary contract.

Back 24

A contract that arises in the following situations: 1. A debtor borrows money, 2. The debtor signs an agreement to pay back the money plus interest, 3. The debtor sells the item to a third party before the loan is paid off, and 4. the third party promises the debtor that he or she will pay the remainder of the loan to the creditor.

Front 25

Creditor beneficiary

Back 25

An original creditor who becomes a benefciary under the debtor's new contract with another party

Front 26

Incidental beneficiary

Back 26

A party who unintentionally benefited by other people's contracts.

Front 27

Covenant

Back 27

An unconditional promise to perform

Front 28

Condition

Back 28

A qualification of a promise that beomes a covenant if it is met. There are three tyes of conditions: conditions precedent, conditions subsequent, and concurrenet conditions.

Front 29

Condition precedent

Back 29

A condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

Front 30

Personal satisfaction test

Back 30

A subjective test that applies to contracts involving personal taste and comfort.

Front 31

Reasonable person test

Back 31

An objective test that applies to commercial contracts and contracts involcing mechanical fitness.

Front 32

Condition subsequent

Back 32

A condition whose occurrence or nonoccurrence of a specific event automaticallhy excuses the performance of an existing duty to perform.

Front 33

Concurrent condition

Back 33

A condition that exists when the parties to contract must render performance simultaneously; each party's absolute duty to perform is conditioned on the other party's absolute duty to perform.

Front 34

Implied-in-fact condition

Back 34

A condition that can be implied from the circumstances surrounding a contract and the parties' conduct.

Front 35

Mutual recession

Back 35

discharges an agreement-If it is wholly or partially executory on both parties they can enter into a second agreement that expressly terminates the first one.

Front 36

Substituted contract

Back 36

Parties can enter into a new contract that revokes and discharges the first one.

Front 37

Novation agreement

Back 37

An agreement that substitutes a new party for one of the original contracting parties and relieves the exiting party of liability on the contract.

Front 38

Accord and satisfaction

Back 38

The settlement of a contract dispute.

Front 39

Impossibility of performance

Back 39

Nonperformance that is excused if a contract becomes impossible to perorm. It must be objective impossibility, not subjective.

Front 40

Force majeure clause

Back 40

A clause in the contract in which the parties specify certain events that will excuse nonperformance.

Front 41

Commercial impractiability

Back 41

Nonperformance that is excused if an extreme or unexpected development or expense makes it impractical for the promisor to perform.

Front 42

Statute of limitation

Back 42

A statute that estabilshes the time during which a lawsuit must be brought; if the lawsuit is not brought within this periood, the injured party loses the irght to sue.