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Bus law today 9th ed ch10

BUSINESS LAW TODAY
Essentials 9th Ed.

Roger LeRoy Miller - Institute for University Studies, Arlington, Texas
Gaylord A. Jentz - University of Texas at Austin, Emeritus

Chapter

10

Contracts: Third Party
Rights, Discharge,
Breach, and Remedies

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Learning Objectives

 What is the difference between an

assignment and a delegation?
 What factors indicate that a third party
beneficiary is an intended beneficiary?
 Under what circumstances is the remedy
of rescission and restitution available?
 When do courts grant specific
performance as a remedy?
 What is the rationale underlying the
doctrine of election of remedies?
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Assignments

An assignment is a transfer of contractual
rights to a 3rd party (assignee).

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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Assignments
Effect: Assignee has the right to demand
performance from the original party (Obligor)
to the contract.
Notice of Assignment.
Rights That Cannot Be Assigned:
Statute Expressly Prohibits Assignment.
Contract is for Personal Services.
Assignment will Materially Change Risks or Duties
of Obligor.
When Contract Itself Prohibits Assignment.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4


Delegations




Transfer of duties to a 3rd party (Delegatee) by
Delegator.
Delegatee still owes duty to original party in
contract, and is still liable for performance.

© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in
a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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