Assignment of rights and delegation of duties Bar Exam Flashcards - Medical Study Cards
Master Assignment of rights and delegation of duties with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.
Assignment of rights and delegation of duties Flashcard Deck - 10 Cards
Flashcard 1: What rights does an incidental beneficiary have against the promisor?
Answer: An incidental beneficiary has no contractual right to enforce the agreement, even if the beneficiary foreseeably benefits from performance. Only an intended beneficiary may sue as a third-party beneficiary.
Flashcard 2: What is a novation, and why does it matter when duties are delegated?
Answer: A novation is an agreement among the obligee, original obligor, and new obligor to substitute the new obligor and release the original obligor. Without a novation, delegation does not discharge the original obligor’s liability for nonperformance.
Flashcard 3: What defenses may a promisor assert against an intended third-party beneficiary?
Answer: The promisor may assert defenses based on the contract with the promisee, such as failure of consideration, illegality, or the promisee’s breach. The promisor generally may not assert unrelated personal defenses against the beneficiary.
Flashcard 4: When do an intended beneficiary’s rights vest under the majority (Restatement) rule?
Answer: Rights vest when the beneficiary manifests assent, materially relies on the promise, or brings suit to enforce it. Before vesting, the original parties generally may modify or rescind the agreement unless the contract provides otherwise.
Flashcard 5: Which assignments of rights are generally ineffective under the majority rule?
Answer: An assignment is generally ineffective if it materially increases the obligor’s burden or risk, materially changes the obligor’s duties, or is prohibited by law or an applicable contract term. An assignment of a future right is generally permitted if the right is sufficiently identifiable.
Flashcard 6: What is the difference between a creditor beneficiary and a donee beneficiary?
Answer: A creditor beneficiary is intended to receive performance satisfying the promisee’s duty to the beneficiary, while a donee beneficiary is intended to receive a gift. Both are intended beneficiaries and may enforce the promise once their rights vest.
Flashcard 7: What is an assignment of contract rights?
Answer: An assignment is a transfer of the assignor’s contractual right to receive performance to an assignee. The assignment generally transfers the right immediately, and the assignee may enforce it against the obligor.
Flashcard 8: Who qualifies as an intended third-party beneficiary under the majority (Restatement) rule?
Answer: A third party is intended if the contracting parties intended to give that person a right to performance, shown by the contract and surrounding circumstances. A beneficiary merely receiving an incidental benefit has no enforcement rights.
Flashcard 9: What is a delegation of contractual duties, and when may it be barred?
Answer: Delegation transfers the duty to perform from the original obligor to a delegate, but the delegating party remains liable unless the obligee agrees to a novation. Delegation is barred when the contract prohibits it, the obligee has a substantial interest in personal performance, or performance would materially change the expected result.
Flashcard 10: What is the effect of notice to the obligor after an assignment?
Answer: Until the obligor receives notice, payment or performance to the assignor generally discharges the obligor’s duty. After notice, the obligor must perform to the assignee to obtain discharge, subject to applicable defenses.
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