Ch 4: Third Party Rights in Contracts
About This Chapter
Third Party Rights in Contracts - Chapter Summary
Check out this comprehensive business law chapter to study a variety of third party rights in contracts. The chapter's short lessons are taught by expert instructors who break down the rights of third-party beneficiaries, promisors, promisees and other parties that are involved in different types of contracts. When you're finished with a lesson, try taking the accompanying quiz to retain critical information. The chapter concludes with a multiple-choice exam, and we encourage your to use the Ask the Expert feature if you have any questions about third party rights. By the end of the chapter, you should be able to:
- Identify third-party beneficiaries and parties in contracts
- Discuss beneficiary rights in terms of vesting and enforceable claims
- Summarize promisor and promisee rights in a contract
- Evaluate the involved parties in a contract assignment
- Assess the rights of parties in an assignment
- Explain the revocability of assignment concept
- Recognize the parties and duties that are involved in delegation
1. Third-Party Beneficiaries & Contracts: Definition & Parties
There are two primary parties to a contract, a promisor and a promisee. However, there are times when a contract actually benefits a third party. These third parties are known as third-party beneficiaries and can be intentional beneficiaries or incidental beneficiaries.
2. Rights of a Beneficiary: Vesting & Enforceable Claims
Intentional third-party beneficiaries to a contract are indirect parties but receive a benefit from a contract because of the promise of a gift or receives a benefit because of a debt owed through performance by the promisee.
3. Rights of Promisors and Promisees in Contracts
There are two parties to a contract, a promisor and a promisee. Each holds a responsibility to the contract but in different ways. As each role indicates, one party makes a promise, and the other party benefits from the promises made.
4. Contract Assignment: Definition and Involved Parties
Contract assignment occurs when one party to a contract gives the obligations and benefits of the contract to another party. Assignment of rights occurs when one party to a contract gives the benefits of the contract to another party. This lesson explains what an assignment is and what parties are involved.
5. Parties in an Assignment: Rights of the Assignee, Assignor & Obligor
Assignments are common in contracts law. There will generally be at least three parties involved in an assignment. This lesson explains the roles and rights of the assignee, assignor, and obligor.
6. Revocability of Assignment: Definition & Explanation
A contract assignment means that one party transfers contract rights to another party. The type of the assignment determines if, and how, the assignment can be revoked. This lesson explains assignment revocability.
7. What is Delegation? - Definition, Parties & Duties
Delegation occurs when the responsibility and authority for performing a particular contractual duty is transferred to another party. This is different than an assignment. This lesson explains delegation, and the differences between delegation and assignment.
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Other Chapters
Other chapters within the Business 103: Introductory Business Law course
- The U.S. Constitution & Business
- The Basics of Contract Law
- Legal Requirements to Form a Contract
- Breach of Contract & Remedies
- Discharge of Contracts
- UCC Sales Contracts
- Introduction to Tort Law
- Product Liability & Consumer Protection
- Debtors' & Creditors' Rights
- Agency's Role in Business Law
- The American Legal System & Sources of Law
- The Legal & Ethical Environments of Business
- Studying for Business 103