Promisee’s rights v. Promisor PDF

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Contracts II Lecture Notes ch 2 ;casebook notes included...

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Contracts II Rules of Law Lecture Notes !Promisee’s rights v. Promisor The promise as well as the beneficiary has a right against the promisor. If the promisee’s intent was to make a gift of the promised performance to the beneficiary, then the promise will typically suffer no economic loss if the promisor fails to perform. If the promise were to sue for damages, she recover only nominal damages. ASSIGNMENT AND DELEGATION Involve introducing new parties to the contract after its formation; assignees and delegates acquire their rights through a later transaction with one of the original contracting parties. Transfer of a right! is an assignment Transfer of a duty! is a delegation. *Assignment of the contract requires both the assignment of rights and the delegation of duties. Assignment of Rights: ! is a transfer of a contractual right or benefit. Is a present transfer of the right and so extinguishes the right of the oblige and sets it up exclusively in the assignee. This gives the assignee a direct right against the obligor under the contract. Obligor must be notified of the assignment before she is legally bound to pay the assignee rather than the original promise. If notice is not given to the obligor, she can continue to render performance to the assignor before being notified of the assignment. Her obligations are discharged and she does not have to perform against the assignee. Once notified of a valid assignment, the assignee is substituted for the assignor and only performance to the assignee discharges the obligor’s duty.

Assignor’s right to enforce the same contractual right are extinguished, and the assignee alone may now enforce the contract. Assignee becomes the real party insofar as that right is concerned and she may sue the obligor directly. Suit is subject to all the defenses and counterclaims arising out of the contract which the obligor could have asserted against the oblige. Obligee!the party who transfer the right under the original contract, and upon assignment is called the assignor. Assignee! the party who acquires the right. Obligor! party who owes the right under the original contract and now owes it to the assignee....