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Lecture Business law: The ethical, global, and e-commerce environment (15/e): Chapter 17 - Mallor, Barnes, Bowers, Langvardt

Chapter 17 - Rights of third parties. In this chapter, you will learn: Explain the concept and consequences of assignment, explain the concept and consequences of delegation, discuss the concept of the third party beneficiary and identify the three kinds of beneficiaries. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Rights of Third Parties P A E T R H C 17 The best minute I spend is the one I invest in people. Kenneth Blanchard, The One Minute Manager (1993) Learning Objectives Explain the concept and consequences of assignment Explain the concept and consequences of delegation Discuss the concept of the third party beneficiary and identify the three kinds of beneficiaries Sometimes a person who entered into a contract must transfer the contract rights or duties to another person (third party) Examples: sublease of your apartment, asking another person take over work you agreed to do, or doing something to benefit a third person Key to successful transfer: understand the . | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent Contracts P A R T 3 Capacity to Contract Illegality Writing Rights of Third Parties Performance and Remedies Contracts P A R T Rights of Third Parties P A E T R H C 17 The best minute I spend is the one I invest in people. Kenneth Blanchard, The One Minute Manager (1993) Learning Objectives Explain the concept and consequences of assignment Explain the concept and consequences of delegation Discuss the concept of the third party beneficiary and identify the three kinds of beneficiaries Sometimes a person who entered into a contract must transfer the contract rights or duties to another person (third party) Examples: sublease of your apartment, asking another person take over work you agreed to do, or doing something to benefit a third person Key to successful transfer: understand the third party’s abilities, limitations, and needs Overview A person who owes a duty to perform under a contract is called an obligor The person to whom the duty is owed is called the obligee Overview Transfer of a right under a contract is called an assignment Example: Jane arranges for her employer to transfer her next paycheck to her parents’ bank account Employer is the obligor (owes Jane money) Jane is the obligee and assignor Jane’s parents are the assignees Assignment of Contracts Assignments may be made in any way sufficient to show assignor’s intent to assign A writing is not necessary Unless statute of frauds applies Assignee does not need to give consideration to assignor in exchange for the assignment Details of Assignment Assignment will not be effective if it: Is contrary to public policy Violates a non-assignment clause in a contract Adversely affects obligor in significant way Assignment may be ineffective if the contract right involved a personal relationship or element of