Pepperdine BA 358 Midterm Terms & Rules: Contract
Law Exam Study Set
intended beneficiary - ANSWER A third party who is intentionally benefited from a
contract made by two other parties.
Promisor - ANSWER The contract party who's actions benefit a third party
Do all third party beneficiaries have the right to legally enforce contracts? - ANSWER
No, only intended beneficiaries have the right to enforce contracts who are seeking to
enforce a duty or gift of the promisee.
Promisee - ANSWER The contract party to whom a promise is made
Under what conditions can intended beneficiaries enforce contracts? - ANSWER The
enforcement of the contract must either satisfy a duty of the promisee or show the
promisee intended to make a gift to the beneficiary
Creditor Beneficiary - ANSWER A beneficiary who is seeking the enforcement of a duty
of the promisee within a contract
Donee Beneficiary - ANSWER A beneficiary who is receiving a gift from a promisee
Incidental beneficiary - ANSWER Third party who is benefited by a contract, but has no
right to enforce it.
Does a party need to be specifically named in a contract to be its intentional
beneficiary? - ANSWER No, they can either be named, belong to a class of people
named within contract or belong to a party whom the contract was explicitly made to
benefit.
Assignment - ANSWER The transfer of the rights of a contract to another party
Delegation - ANSWER The transfer of duties of a contract to another party
Obligor - ANSWER A party obligated to due something by a contract
Any contract right is assignable unless: - ANSWER Assignment would substantially alter
the agreement, assignment is banned by public policy, or it is banned by the contract's
terms
Security interests - ANSWER rights in personal property that assure payment or the
performance of some obligation
If an assignor fails to fulfill their duties within a contract does the obligor still retain their
defenses against the assignee? - ANSWER Yes, the obligor's defenses remain the same
, When can an assignee enforce the assignor's contract against an obligor? - ANSWER
When the assignment is made the the obligor is notified
Is an assignment valid before the obligor in notified? - ANSWER Yes, the assignment is
valid the moment it is made
Gratuitous assignment - ANSWER Assignments made as a gift with no consideration
Are gratuitous assignments revokable? - ANSWER Yes, if they are assigned orally, but
not if they are assigned in writing
Are rights assigned with consideration revokable? - ANSWER No
Can the assignment of rights take place orally? - ANSWER Yes, so long as the contract
does not fall under the statute of frauds
Assignor's Warranty - ANSWER Assignor promises to the assignee that assignors rights
do exist and the obligor does not have any defenses to these rights apart from those that
are obvious
How does UCC code differ from common law in terms of the assignment of rights -
ANSWER The UCC allows for the same defenses that could be used against the assignor
by the obligator to be used against the assignee, unless the contract contained a waiver
clause
Wavier clause - ANSWER A clause within a contract that prohibits an obligor from
making a defense they could have used against an assignor against an assignee
What duties are not delegable? - ANSWER Delegation that violates public policy, duties
that are prohibited from being delegated by contract, or if the obligee ha a substantial
interest in person performance by the obligor
Once a duty is delegated, is the delegator relieved of responsibility for them? - ANSWER
No, the delegation of a duty does not relive the delegator of their liability
What does it mean for an obligee to have a substantial interest in a personal
performance of a duty by an obligor? - ANSWER The obligor's task is too personal to be
preformed by anyone else
Novation - ANSWER A three way agreement allowing an obligor to transfer all rights and
duties to a third party without fear of being held to them at a later point
Does novation dissolve any previous rights and duties of a contract? - ANSWER Yes,
unless explicitly stated, all additional rights and duties not clarified as being part of the
novation are dissolved
Discharge - ANSWER A party is discharged when she has no more duties under the
contract
Discharge by full performance - ANSWER When a contract has been entirely completed
Law Exam Study Set
intended beneficiary - ANSWER A third party who is intentionally benefited from a
contract made by two other parties.
Promisor - ANSWER The contract party who's actions benefit a third party
Do all third party beneficiaries have the right to legally enforce contracts? - ANSWER
No, only intended beneficiaries have the right to enforce contracts who are seeking to
enforce a duty or gift of the promisee.
Promisee - ANSWER The contract party to whom a promise is made
Under what conditions can intended beneficiaries enforce contracts? - ANSWER The
enforcement of the contract must either satisfy a duty of the promisee or show the
promisee intended to make a gift to the beneficiary
Creditor Beneficiary - ANSWER A beneficiary who is seeking the enforcement of a duty
of the promisee within a contract
Donee Beneficiary - ANSWER A beneficiary who is receiving a gift from a promisee
Incidental beneficiary - ANSWER Third party who is benefited by a contract, but has no
right to enforce it.
Does a party need to be specifically named in a contract to be its intentional
beneficiary? - ANSWER No, they can either be named, belong to a class of people
named within contract or belong to a party whom the contract was explicitly made to
benefit.
Assignment - ANSWER The transfer of the rights of a contract to another party
Delegation - ANSWER The transfer of duties of a contract to another party
Obligor - ANSWER A party obligated to due something by a contract
Any contract right is assignable unless: - ANSWER Assignment would substantially alter
the agreement, assignment is banned by public policy, or it is banned by the contract's
terms
Security interests - ANSWER rights in personal property that assure payment or the
performance of some obligation
If an assignor fails to fulfill their duties within a contract does the obligor still retain their
defenses against the assignee? - ANSWER Yes, the obligor's defenses remain the same
, When can an assignee enforce the assignor's contract against an obligor? - ANSWER
When the assignment is made the the obligor is notified
Is an assignment valid before the obligor in notified? - ANSWER Yes, the assignment is
valid the moment it is made
Gratuitous assignment - ANSWER Assignments made as a gift with no consideration
Are gratuitous assignments revokable? - ANSWER Yes, if they are assigned orally, but
not if they are assigned in writing
Are rights assigned with consideration revokable? - ANSWER No
Can the assignment of rights take place orally? - ANSWER Yes, so long as the contract
does not fall under the statute of frauds
Assignor's Warranty - ANSWER Assignor promises to the assignee that assignors rights
do exist and the obligor does not have any defenses to these rights apart from those that
are obvious
How does UCC code differ from common law in terms of the assignment of rights -
ANSWER The UCC allows for the same defenses that could be used against the assignor
by the obligator to be used against the assignee, unless the contract contained a waiver
clause
Wavier clause - ANSWER A clause within a contract that prohibits an obligor from
making a defense they could have used against an assignor against an assignee
What duties are not delegable? - ANSWER Delegation that violates public policy, duties
that are prohibited from being delegated by contract, or if the obligee ha a substantial
interest in person performance by the obligor
Once a duty is delegated, is the delegator relieved of responsibility for them? - ANSWER
No, the delegation of a duty does not relive the delegator of their liability
What does it mean for an obligee to have a substantial interest in a personal
performance of a duty by an obligor? - ANSWER The obligor's task is too personal to be
preformed by anyone else
Novation - ANSWER A three way agreement allowing an obligor to transfer all rights and
duties to a third party without fear of being held to them at a later point
Does novation dissolve any previous rights and duties of a contract? - ANSWER Yes,
unless explicitly stated, all additional rights and duties not clarified as being part of the
novation are dissolved
Discharge - ANSWER A party is discharged when she has no more duties under the
contract
Discharge by full performance - ANSWER When a contract has been entirely completed
