BCOR 3000 1nd Edition Lecture 15 Outline of Last Lecture I Undue Influence II Duress III Statues of Fraud IV When is writing enough V Parol of Evidence Outline of Current Lecture I What is a Third Party II Involvement After Formation III Assignment and Delegation IV Limits on Delegation V Limits on Assigning Rights VI 3rd Party Beneficiaries Current Lecture Chapter 13 Third Party Rights and Discharge What is a Third Party Someone who is not a party of the original agreement Did not sign agreement But they can be involved at contract formation and after contract formation Ex subletting you house they are the 3rd party b c they did not sign the actual lease but still have obligations to fulfill These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Third Party Involvement after formation A contract is a set of rights and duties Ex Painter of house has rights to get paid but has duties to paint and clean up Party can transfer any of these to another One can Delegate Duties have another perform for you and or Assign Rights transfer your rights to another Can do separately or together Completely or partially If I transfer a duty delegated doing something for someone If I transfer aright assigned Ex Don t pay me pay my brother Assignment and Delegation Can occur separately or together Can assign or delegate some or all Rule 1 Delegatee of duty must accept duty Rule 2 Delegator of duty remains responsible that the job duty is done properly and performed correctly When one person delegates and then someone accepts both can be sued in court because both are responsible Limits on delegation if hired to perform a particular skill i e a portrait you cannot delegate Obligor Obligee duty and obligation are the same thing Limits on Delegation Special Skills if hired to perform a particular skill i e a portrait you cannot delegate Special Trust if there is a special trust between two people you cannot delegate Recipient of performance will be getting something different Ex Bring car in on Nov 10th to get car waxed If it is a Camry or Honda then it is fine but if it is a suburban than no b c different requirements for getting car fixed based on size and car model Contract can prohibit Essentially I want you and only you to do it Can include this in any contract as a clause so that there can be no delegation The right of payment can be assigned to anyone even if it says no assigning of rights If the duty can be done well it can be done and delegated by anyone If requires special skills it cannot be delegated This contract cannot be assigned This contract is not assignable still means that there is no delegation or ability to assign includes both aspects Generally you can transfer an duty or assign any right unless specifically told not to Can assign rights without delegating duties Can assign all rights and some duties No rights and all duties Limits on Assigning Rights Can almost always assign a right to receive money Other rights can be assigned unless Increases or changes the duty that is connected with the right Contract can prohibit 4 pass lift tickets if it says there are non transferable 3rd Party Beneficiaries Present when contract is formed Contract calls for another to be benefitted Any intended beneficiary can sue under contract Creditor when one assumes loan Donee gift recipient Incidental Beneficiaries cannot When parties to contract did they intend to benefit someone if yes then the 3 rd party gets rights If it is incidental and random beneficiary they do not get rights Ex Donee I go to a furniture maker I must pay and furniture maker must make When finished I tell the maker to send it to my dad If the desk arrives and is damages then my dad would have rights to making sure the desk is correct Dad can sue furniture maker Ex Creditor When there is a sublease with someone They pay you and you pay landlord Landlord is not part of the contract but still receives a benefit Ex incidental Construction on US 36 Limiting business for now but will provide a benefit when it is completed Stores now cannot sue because they are incidental to the construction going on currently Discharge of Duties Means party has done all that is needed under the contract Most often by doing what contract requires performance But many other circumstances Effect In some cases duties can be discharged even though not fully performed CAN DO It s have you done everything you can do can be discharged Ex Blizzard of 2006 there were no final exams discharged b c the students did what they could do