Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 12: Performance of a Contract (Assignment and Delegation (A…
Chapter 12: Performance of a Contract
Third Party Beneficiary
Someone who was not a party to the contract but stands to benefit from it
Assignment and Delegation
A contracting party may transfer his rights under the contract, which is called an assignment of rights.
A contracting party may transfer her duties pursuant to the contract, which is a delegation of duties
The assignor is the one making an assignment and the assignee is the one receiving an assignment
What rights are assignable
is forbidden by law or public policy
is validly precluded by the contract itself
would substantially change the obligor's rights or duties under the contract
Rights of the Parties After Assignment
The obligor may generally raise all defenses against the assignee that she could have raised against the assignor
once the assignment is made and the obligor notified, the assignee may enforce her contractual rights against the obligor
What Duties are delegable
the contract prohibits delegation
the oblige has a substantial interest in personal performance by the obligor
delegation would violate public polict
Performance and Discharge
a party is discharged when she has no more duties under a contract
most contracts are discharged by full performance
Strict Performance and Substantial Performance
Substantial Performance-court looks at these issues
how much benefit has the promise received
if it is a construction contract, can the owner use the thing for its intended purpose
can the promisee be compensated with money damages for any defect
did the promisor act in good faith
Strict Performance-a party is generally not required to render strict performance unless the contract expressly demands it and such a demand is reasonable
Statute of Limitations
impossibility- tue impossibility means that something has happened making it utterly impossible to do what the promisor said he would do
a statute of limitations begins to run at the time of injury and will limit the time within which the injured party may file suit
Remedies
A remedy is the method a court uses to compensate and injured party
Four types of interest the court choose on
expectation interest
reliance interest
restitution interest
Equitable interest
Damages
Direct Damages are those that flow directly from the contract
Consequential damages reimburse for harm that results from the particular circumstances of the plaintiff
Incidental Damages
Reliance interest designed to put the injure party in the position he would have been in had the parties never entered a contact
Restitution interest is a common remedy in contracts involving fraud, misrepresentation, mistake and duress
Other Equitable Interest
Specific Performance forces two parties to perform their contract
Injunction
is a court order that requires someone to refrain from doing something.
It is another remedy that courts sometimes use when money damages would be inadequate