FYLSX - Baby Bar Third Party Contract Rights Flashcards
6 cards from real FYLSX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 FYLSX - Baby Bar Third Party Contract Rights flashcards as text
Tom assigns to Nancy all of Tom's rights under a contract with Buyer Corp. Two days later, Tom assigns the same rights to Wendy for value. Wendy has no knowledge of the prior assignment to Nancy. Under the last-in-time rule, who prevails?
Answer: Nancy, because the first assignment in time generally prevails
Under the majority (first-in-time) rule, Nancy's earlier assignment prevails; the second assignment to Wendy is ineffective because Tom had nothing left to assign.
Which of the following best describes a 'gratuitous assignment'?
Answer: An assignment made as a gift, without consideration from the assignee
A gratuitous assignment is one given as a gift — no consideration flows from the assignee — and it can generally be revoked by the assignor unless certain exceptions apply.
Under which circumstance is a gratuitous assignment generally IRREVOCABLE?
Answer: When the assignee changes position in detrimental reliance on the assignment
A gratuitous assignment becomes irrevocable when the assignee detrimentally relies on it, because equity prevents the assignor from revoking to the assignee's detriment.
Alice is owed $1,000 by Bob. Alice assigns this debt to Carol (for value), and Carol notifies Bob. Later, Alice assigns the same debt to Dan (for value), but Dan does not notify Bob. Bob pays Carol. Which of the following is true?
Answer: Bob is discharged by payment to Carol, who had the first-in-time assignment
Carol held the first-in-time assignment and gave notice, so Bob is discharged upon paying Carol; Dan's remedy lies against Alice for the wrongful second assignment.
Party A delegates performance of a contract to Party B; the other contracting party (C) objects to the delegation. Under which theory can C most effectively refuse to accept B's performance?
Answer: The contract involved personal services requiring unique skill or special trust in A
When a contract calls for performance relying on the obligor's unique skill or the obligee's special trust in that person, the obligee may refuse performance by a delegate.
On the FYLSX, an 'assignment of the contract' (as opposed to an assignment of rights only) typically:
Answer: Is interpreted to include both an assignment of rights and a delegation of duties
Courts interpret 'assignment of the contract' to mean both an assignment of rights and a delegation of duties, though the assignor remains liable absent a novation.