Cengage learning guide 16,17

In determining whether a beneficiary is an intended or incidental beneficiary, the presence of one or more of the following factors strongly indicates that the third party is an intended beneficiary to the contract: whether performance is rendered _____(1)_____ to the third party, if the third party has a right to _____(2)_____, and if the third party is _____(3)_____.

(1) directly(2) control the details of performance(3) expressly designated in the contract.

Which of the following third-party beneficiaries have the right to enforce a contract? Choose 2 answers.

-Creditor beneficiary -Donee beneficiary

What legal limitations are imposed on parties to assignments and delegations?

-The assignee obtains only the rights that the assignor had under the contract. -A contract cannot prevent an assignment of the right to receive funds. -Contracts that are for a service that depends on a particular skill or talent may not be delegated.

What must be included in a contract to satisfy the requirement that it be in writing?

-The subject matter of the contract must be identified. -All of the parties to the contract must be named in the writing. -Consideration to be paid must be defined in the contract.

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds?

-contracts for the sales of land -collateral promises to pay the debt of another person -promises made in consideration of marriage

A party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract?

-oral agreements that happened at the same time as contract formation -agreements prior to contract formation -negotiations prior to contract formation

Assuming there is no contract language prohibiting delegations, which of the following acts could likely be delegated?

-painting the exterior of a house to another house painter -the mowing of grass in a residential neighborhood to another landscaper

As a supplier to FEB, Jakes's performance ________ directly to Flavell, and Flavell _________ have the right to control the details of Jakes's performance. Flavell _______have rights in the contract between Jakes and FEB, and Flavell is thus likely an ______________ beneficiary to the contract between Jakes and FEB. It ____________likely that the court would have ruled in favor of Flavell against Jakes.

-was not -did not -did not -incidental -is not

In determining whether a third-party is an intended or incidental beneficiary, a court may consider:

-whether the party is able to control any details of the performance. -whether the party is directly named in any part of the contract

The Statute of Frauds requires certain types of contracts to be in writing. All of these contracts must be in writing except

A promise to work for an employer

A third party that is considered an intended beneficiary to a contract_________

Can

sue the promisor for breach of contract. A third party that is considered an incidental beneficiary to a contract__________

Cannot

In this case, Stewart____

Did

the purchase of tobacco barns

Does , contracts involving interest in land

What rights does a third-party beneficiary to a contract hold in regard to that contract?

If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.

Which of the following may sue on a contract, to which they are not a party?

Intended beneficiaries

______________likely that the court would have ruled in favor of Flavell.

Is

Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter:

Jose cannot enforce the contract against Elvis because the contract is for personal services.

Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect:

Kaylee will be allowed to introduce the evidence under the parol evidence rule.

Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is:

Laurelei, because she is a donee beneficiary.

Will a valid delegation relieve the delegator from the contract?

No, an obligee can sue either the delegatee or the delegator for non-performance.

Daphne contracts with Speedy Builders Inc. to construct a six-foot fence around her yard. Daphne's neighbor Rando is delighted because Daphne's fence will border the north side of his property. This means he can enclose the rest of his property for a much lower price. Before construction begins, however, Speedy Builders receives an offer for another, more lucrative project, and refuses to perform the contract with Daphne. Who can sue Speedy Builders for breach of contract?

Only Daphne can sue.

Which of the following are contract rights may be assigned?

Payment of $500

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?

The contract must be objectively impossible to perform within one year.

Which of the following elements are required of ALL intended beneficiaries?

The contracting parties were aware of the third-parties existence and position at the time of making the contract

When a contract duty is legally delegated, must the obligee accept performance from the delegatee?

Yes and the delegatee is obligated to perform as the delegator would have.

Frank purchases a $100,000 life insurance policy from Mutual of Omaha Insurance Co. The insured party is Frank's wife Cheryl. Frank lists Cheryl's daughter Katy as the beneficiary on the policy. Two years later, Cheryl dies, and Katy tries to collect on the insurance policy. Mutual of Omaha refuses to pay. Can Katy sue Mutual of Omaha to enforce the contract?

Yes, Katy can sue Mutual of Omaha because Katy is a donee beneficiary.

Your partner wants to make sure you are well taken care of financially in the event they die, and so takes out a life insurance policy on themselves with Liberty Life, Co., naming you as beneficiary on the policy. Unfortunately, tragedy strikes and your partner dies. However, the life insurance company refuses to pay you on the policy. Do you have the right to sue them since you were not a party to the contract?

Yes, because you are an intended beneficiary of the contract.

May a writing consistent of multiple separate documents?

Yes, if they are attached together in some manner.

Which of the following is an intended beneficiary to a contract?

a beneficiary of an insurance contract

A partially integrated contract means:

a contract contains only some terms, to which the parties agree but not others.

A donee beneficiary is:

a third-party intended beneficiary of a contract who is not a creditor.

Third-party beneficiaries are those who:

are not party to a contract but benefit from it.

___________________there is a contract.

at least one party believes

Reginald hires Sophia to deliver pizzas for his restaurant. All goes well at first. But one night, Sophia decides to go to a concert instead of delivering pizzas. She delegates her delivery tasks to Rosemary, who accepts the delegation and agrees to deliver the pizzas. However, instead of delivering the pizzas, Rosemary takes the pizzas home to her family. At the end of the evening, Reginald has many unhappy customers, and wants to sue for breach of contract to recover the income he lost for the evening. Reginald should be able to sue:

both Sophia and Rosemary.

Therefore, Flavell _______________sue to enforce the contract.

can

which FEB__________ have with Flavell and which Jakes _________

does, does not

Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that:

e-signatures cannot be used on prenuptial agreements.

_________________the oral agreement between Stewart and the Harts as a valid contract under the partial performance exception to the writing requirement of the Statute of Frauds.

enforce

As a result of performance being rendered directly to Flavell, and Flavell's right to control the details of performance, Flavell will likely be considered an

intended

There__________________ sufficient evidence to show that the contract had been partially performed by the parties. Therefore, a court could

is

Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land:

is not enforceable because it violates the statute of frauds.

______________________is better served by enforcing the oral contract when partial performance has taken place. In determining whether an oral contract has sufficient partial performance to be enforced, courts look for whether the purchaser has:

justice

When a contract has been assigned, what rights does the original contract holder (assignor) still have?

none

What is the term for evidence of communication between parties to a contract that is not included in the contract?

parol evidence

__________ is an exception to the writing requirement of the Statute of Frauds. In general, partial performance indicates that

partial performance of a contract

Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential?

quantity of items being purchased

What is the primary purpose of the Statute of Frauds?

requiring written evidence of agreements concerning important transactions

An assignment is the transfer of:

rights

An exception to the doctrine of privity of contract arises when a contract is intended to benefit a________

third

Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets:

violates the statute of frauds, and is, therefore, unenforceable.

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?

voidable

Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy:

will be unsuccessful, because Marla never signed the agreement.