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Saturday, 30 March 2013

Contracts: Third Party Rights


Contracts: Third Party Rights


Introduction
Only the Parties to a contract have rights and liabilities under the contract.
Exceptions:
§ Assignment or Delegation.
§ Third party beneficiary contract.

Assignments and Delegations


Transfer of contractual rights is an assignment.
Transfer of contractual duties is a delegation.
Assignments
Rights cannot be assigned:
§ If the assignment is contrary to statute.
§ When a contract is personal in nature.
§ Assignment materially changes rights or duties of obligor.
§ If the contract stipulates the right cannot be assigned.
Case 15.1: Forest Commodity v. Lone Star (2002).
Valid notice must be given to all parties.
Case 15.2: Gold v. Ziff Communications (2001).

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