Question 1

Landlord and Tenant entered into a five-year lease.One year later,Landlord sold the premises to Purchaser.Purchaser is bound by the lease.

Accepted Answer

A lease transfers with the property, so the new owner (Purchaser) would be bound by the existing lease agreement with the tenant.

Question 2

Explain the difference between negotiability and assignability.

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Question 3

What is the defence of set off and why is it important in the context of an assignment of contractual rights?

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Question 4

Briefly explain the general rule of contract that gives rise to the concept of privity of contract.

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Question 5

An unscrupulous creditor might sell the right to collect the same debt to two different persons by assigning it to each of them.Which one of the two innocent assignees is entitled to payment and why?

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Question 6

Explain the phrase "an assignee takes subject to equities."

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Question 7

Explain how a transferee of rights under a negotiable instrument may obtain greater rights against the maker of the instrument than an assignee of contractual rights might have against the debtor/promisor under an assignment.

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Question 8

Vicarious performance is a necessity in the real world.Explain.

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Question 9

When can intermediate carriers successfully claim the protection of an exemption clause?

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Question 10

Ordinarily,a debtor/promisor must consent to an assignment.

Accepted Answer

In general, a debtor or promisor does not need to consent to an assignment of rights unless the contract specifically requires it or the assignment materially changes the duty or increases the burden or risk.

Question 11

Since contracts can benefit non-parties,should the rules relating to privity of contract be changed in Ontario?

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Question 12

Who is an assignor?

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Question 13

How has the privity of contract rule been modified with respect to insurance?

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Question 14

An undisclosed principal is a contracting party who unknown to the other party is represented by an agent.

Accepted Answer

This is the definition of an undisclosed principal.

Question 15

A debtor/promisor who continues to make payments to his original creditor after receiving notice of an assignment will not be required to pay the amount a second time.

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Question 16

An assignee of a contract takes the contract subject to equities.Explain the meaning of this phrase with the use of examples.

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Question 17

A debtor/promisor ignores a notice of an assignment at her own risk.

Accepted Answer

Ignoring a notice of assignment may result in the debtor making payments to the wrong party and potentially facing liability for the same debt twice. It is important for debtors to acknowledge and comply with notices of assignment to ensure that they are fulfilling their obligations to the rightful assignee.

Question 18

Explain the concept of a chose in action.

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Question 19

What is vicarious performance? What types of contracts cannot be vicariously performed?

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Quiz 11: Privity of Contract and the Assignment of Contractual Rights