Question 1

If the promisor's performance will satisfy a legal duty that the promisee owes a third party,the third party is a(n):

Accepted Answer

If the promisor's performance will satisfy a legal duty that the promisee owes a third party,the third party is a creditor beneficiary.The duty owed can be any kind of legal duty and need not necessarily be the payment of money.

Question 2

Ford owned an apartment complex and was converting the complex to a cooperative by selling individual units.Each purchaser was required to pay Ford an extra $30 per month for utilities,taxes,and insurance.Ford sold all his rights in the complex to Roberts and assigned the purchasers' contracts to him.Roberts failed to pay the applicable property tax,and Crowe,a purchasing tenant,sued him to compel payment of the tax.Roberts argued that in purchasing Ford's interest,all he bought was the right to collect the payments made by tenants and that he assumed no duties.Is Roberts liable for the property tax?

Accepted Answer

The answer of Ford owned an apartment complex and was...

Question 3

An incidental beneficiary can:

Accepted Answer

Occasionally,the performance of a contract intended solely for the benefit of the promisee will also incidentally benefit a third person.Members of the general public are generally held to be incidental beneficiaries of contracts such as street repair contracts entered into by municipalities or other government units.

Question 4

Explain what types of contracts are assignable and name the types of contracts that are not assignable.

Accepted Answer

The answer of Explain what types of contracts are assignable...

Question 5

An underground water main burst in Manhattan and flooded the building where the Acme electric company has an electricity supply substation.A fire resulted and disrupted electric power for four days.This occurred during the biannual "Buyers Week" when merchandisers from around the world were in town to visit fashion showrooms and place orders for future seasons.Some 200 merchandisers brought suit against Acme.Some of the businesses had no direct contractual relationship with Acme.They argued that their lease agreements with their landlords,who were the direct contracting entities with Acme,obligated them to pay a share of the electricity expenses and therefore they could sue under the contracts between the landlords and Acme.Are they correct?

Accepted Answer

The answer of An underground water main burst in Manhattan...

Question 6

What is an implied guarantee?

Accepted Answer

The answer of What is an implied guarantee?...

Question 7

The municipality of College Town enters into a contract with Streetz to have the town's roads repaired.Katie is a resident of College Town and is considered a(n):

Accepted Answer

Occasionally,the performance of a contract intended solely for the benefit of the promisee will also incidentally benefit a third person.Members of the general public are generally held to be incidental beneficiaries of contracts such as street repair contracts entered into by municipalities or other government units.

Question 8

X,a builder,contracts with the city of Y to build a new convention center.Z,a hotel owner,stands to benefit once the convention center is built,so Z is angry when X backs out of the contract.Z wants to sue X.Can Z sue X?

Accepted Answer

Incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.

Question 9

Who is a creditor beneficiary? Can he/she enforce the contract?

Accepted Answer

The answer of Who is a creditor beneficiary? Can he/she...

Question 10

GP had been contracted by the city of Kingston to install a monitoring system at all public places.This was to be done in two phases and the city had the right to terminate the contract.GP had plans to use a subcontractor,Rex,whom they usually hired for the last phases of projects executed by them.After two weeks of the work,the city of Kingston found that things were not going properly and terminated GP's contract.Can Rex sue the city of Kingston?

Accepted Answer

Incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.

Quiz 17: Third Parties Contract Rights

If the promisor's performance will satisfy a legal duty that the promisee owes a third party,the third party is a(n) :

An incidental beneficiary can:

Explain what types of contracts are assignable and name the types of contracts that are not assignable.

What is an implied guarantee?

The municipality of College Town enters into a contract with Streetz to have the town's roads repaired.Katie is a resident of College Town and is considered a(n) :

X,a builder,contracts with the city of Y to build a new convention center.Z,a hotel owner,stands to benefit once the convention center is built,so Z is angry when X backs out of the contract.Z wants to sue X.Can Z sue X?

Who is a creditor beneficiary? Can he/she enforce the contract?