Chapter 17 Rights of Third Parties

A person who assigns a right is an obligee.

• True
• False

All duties may be delegated.

• True
• False

Non-assignment clauses are enforceable.

• True
• False

If a contract contains a non-assignment clause, the clause actually means that duties may not be delegated.

• True
• False

Sheila assigned her right to proceeds of a prize to a charity. Sheila is an assignee and the charity is the assignor.

• True
• False

J contracted to build a house that will improve the value of nearby homes. J’s neighbor is an incidental beneficiary.

• True
• False

J financed car purchase with Co, then sold to M. M agreed to pay remaining amount, but failed. Co may sue:

• James only (contract parties only)
• James and Marsha (creditor beneficiary)
• Marsha only (since substituted)

M contracted w/ S to play piano; had a non-assignment clause. M delegated duties to J. Does S have a claim against M?

• Yes, non-assignment was breached by delegating duties
• no, a replacement was found
• no, contract didn't have non-delegation clause