Business Law - Test 12

Card 217-

What is “Privity of Contract?”

The relationship that exists between the promisor and the promisee of a contract.

What is an “Assignment?”

The act of transferring to another all, or part, of one’s rights arising under a contract.

When rights under a contract are assigned, what becomes the rights of the assignor?

The rights of the assignor are extinguished and the assignee acquires the right to demand performance.

What are the four circumstances under which contractual rights cannot be assigned?

1. When a statue prohibits it

2. When the contract is personal in nature

3. When the assignment changes the duty or the risk

4. When the contract prohibits assignment.

What is a “Delegation?”

The transfer of a contractual duty to a third party.

What are the three contractual duties that cannot be delegated?

1. When a duties are personal in nature

2. When performance by a third party will vary materially from that expected …(tanya matcha

What is a “Third Party Beneficiary?”

One who is not a party to a contract but for whose benefit is made in the contract.

What is the effect of a contract that assigns “all rights?” (mungkin gada di finals)

Generally, it is treated as both an assignment of all rights in a contract and the delegation of all duties to a contract.

What is a “Third Party Beneficiary?”

One who is not a party to a contract but for whose benefit a promise is made in the contract

What are the two types of third-party beneficiaries?

1. Intended beneficiaries (for whose benefit a contract is formed)

2. Incidental beneficiaries (who incidentally benefit from a contract)

What is the big difference between intended beneficiaries and incidental beneficiaries?

Intended beneficiaries can sue the promisor if the contract is breach. Incidental beneficiaries have no right in a contract and cannot sue the promisor if it is breached.

List five ways by which a contractual obligation (or “duty”) can be “discharged” (or terminated)

1. Performance

2. Rescission

3. Agreement (or “Stipulation”)

4. Novation

5. Accord and Satisfaction

What is the most common way to “discharge” (or terminate) a contractual obligation (or “duty”)

By “performance” (or fulfillment) of the contractual duty.

In addition to “performance,” what is another common way that contractual obligations (or duties) are terminated?

By mutual agreement of the parties to “rescind” the contract.

What is “Restitution?”

Typically, when a contract is “rescinded” (either by the ..??

What is a “Novation?”

The substitution, by agreement of a new contract for an old one, with the rights under the old one being terminated and replaced by those in the new one.

What are the three types of money damages that can be awarded in breach of contract cases?

1. Compensatory damages

2. Consequential damages

3. Punitive damages

What are “Compensatory Damages?”

A money award given by a Judge, or a Jury at the conclusion of a trial, which is the equivalent to the actual value of injuries or damages sustained by the aggrieved party in a civil lawsuit.

What are “Consequential Damages?”

Special damages that compensate for a loss that is ..???

What are “Punitive Damages?”

Compensation in excess of actual or consequential damages awarded to punish the wrongdoer. (These damages are no longer recoverable in most states)

What are the two major tools that a Plaintiff can use to enforce a Judgment for money damages in step 10 of the civil lawsuit process?

1. A Writ of Garnishment (a court order to seize liquid assets)

2. A Writ of Attachment (a court order to seize tangible personal property or land to sell at public auction).

1. An Injunction (prohibitive or mandatory)

2. Quasi Contract