Explore the legal terms and concepts related to Third Parties. Click on any term below to learn more about its definition and applications.
Who can sue whom in a suit involving the delegation of duties?
A delegator remains liable under the contract, but the delegatee is only liable (to either party) if...
What duties are not delegable?
Generally, all contract duties are delegable, except where: (1) duties involve personal judgment and...
What is the difference between an assignment and a delegation?
A contract creates both rights and duties. An assignment is the transfer of rights or benefits under...
What is an obligee?
The other, non-delegator party to the contract who will receive the delegates performance (i.e., thi...
What is a delegator, delegatee, and obligee?
The party to the contract who later transfers their duties to another is the "delegator," the non-pa...
When does delegation of duties occur?
Delegation occurs where a party to the contract transfers the performance under the contract to a th...
Who prevails when the same rights have been assigned to multiple parties?
When there are more than one gratuitous assignments, generally the last assignee wins and revokes pr...
What is a delegatee?
The non-party to the original contract, now responsible for performing the delegator's duties under...
What is the effect of consideration on assignment rights?
Generally, a gratuitous assignment without consideration is valid, but revocable (unless the party h...
Who can sue whom in a suit involving the assignment of rights?
An assignee can recover from an obligor, but an assignor for consideration cannot recover from the o...
What is the effect of a contract containing no language about assignment rights?
Under common law, assignments that substantially change the duties of the obligor are not allowed. A...
What is a promisee?
The promisee is the person who obtains the promise that benefits a third party.
What is the effect of a clause prohibiting assignment?
A clause that prohibits assignment only eliminates the right, not the power, to assign. Thus, an ass...
What is an obligor?
The other, non-assignor party to the contract who owes an obligation.
What is an assignor?
The party to the contract who later transfers their rights to another.
What is an assignment?
An assignment is a transfer of rights under an existing contract to a third party.
What defenses may a promisor assert against a third-party beneficiary?
If the third-party beneficiary sues the promisor, the promisor may assert any defense they would hav...
When do a third party's rights to enforce the contract vest?
A third party's rights to enforce the contract vest when: (1) they manifests assent to the promise a...
What two types of intended beneficiaries are there?
Intended beneficiaries are either donees or creditors (usually donees). Look to whether the third-pa...
What is the difference between an incidental and intended beneficiary?
Only an intended beneficiary has legal contract rights, as determined by the intent of the parties....
What is a promisor?
The promisor is the person making the promise that benefits a third party (i.e., the person who give...
In a third-party beneficiary situation, who is the third-party beneificiary, who is the promisor, and who is the promisee?
A third-party beneficiary is not a party to the contract, but may still enforce a contract made for...
Who can sue whom in a suit involving beneficiaries, promisees, and promisors?
While both the beneficiary and promisee can recover from the promisor, a donee beneficiary generally...
What is an assignee?
A non-party to the contract, who can enforce the contract due to the assignment.
What are the implied warranties of an assignor in an assignment for consideration?
There are several implied warranties of an assignor in an assignment for consideration: (1) the righ...
When are modification agreements between the obligor and assignor effective?
Modification agreements between the obligor and assignor are effective if the obligor did not know o...
When can an assignee sue an obligor for payments to the assignor?
Payment by the obligor to the assignor is effective until the obligor knows of the assignment. Thus,...
What is the effect of invalidation language on assignment?
Language that seeks to invalidate assignments eliminates both the right and the power to assign, res...
