Chapter 17 Third Party Rights

Flashcards covering key vocabulary and definitions related to third party rights in contract law.

Privity of contract

Relationship between promisor and promisee of a contract.

Third party

One who is not a direct party to a particular contract and normally does not have rights under that contract.

Assignment

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

Delegation

The transfer of a contractual duty to a third party.

Third party beneficiary contract

A contract in which the parties intend to benefit a third party.

Assignor

Party assigning rights to third party.

Assignee

Party receiving rights.

Obligor

Person who is obligated to perform the duty.

Obligee

Person to whom a duty or obligation is owed.

Restraints against alienation

Prohibitions of the voluntary transfer of property from one person to another.

Delegator

One who delegates their duties under a contract to another.

Delegatee

One to whom contract duties are delegated by another.

Third party beneficiary

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

Intended beneficiary

A third party for whose benefit a contract is formed.

Creditor beneficiary

Benefits from a contract in which one party promises another party to fulfill a duty that the promisee owes to a third party.

Donee beneficiaries

When a contract is made for the express purpose of giving a gift to a third party.

Incidental beneficiary

A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed.

Vesting

The rights of the third party have taken effect and cannot be taken away.