Term
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Definition
| Refers to the private nature of the agreement between the parties who have entered into it. These parties alone have right and liabilities under the contract. |
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Term
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Definition
| Transfer of contractual rights to a third party. Like when a lender sells the mortgage to a third party. Lender is the assignor and the buying third party is the assignee. |
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Term
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Definition
| Transfer of contractual DUTIES to a third party. The original obligor delegates the contract duties to a third party and becomes the delegator. The new third party is the delegatee. The delegator-obligor is still liable for performance if delegatee fails. |
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Term
| 3 rights that can't be assigned |
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Definition
- When a statute expressly prohibits assignment
- When an assignment will significantly change the risk or duties of the obligor - ex: assigning insurance coverage to another party. The insurance company knows nothing of the party
- When a contract prohibits assignment.
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Term
| 4 Exceptions to prohibiting assignments |
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Definition
- Can't prohibit assignment of right to collect monetary payments.
- Can't prohibit assignment of rights in real estate - ALIENATION (transfer of land ownership)
- negotiable instruments - signing over a check can't be prohibited.
- Right to receive damages for breach of contract or payment of account owed can't be prohibited.
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Term
| 3 Duties that can't be delegated |
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Definition
- When duties are personal in nature.
- When performance by a third party will vary materially from that expected by the obligee
- When the Contract prohibits delegation.
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