Quiz 16: The Writing Requirement in Our Digital World

Business

Alexander is the intended third party beneficiary of the contract between Michael and Jackson Auto Sales. A third party beneficiary is one that benefits directly from the contract of two other parties. Alexander does not have the right to sue Jackson Auto Sales if they do not deliver the car because he is a third party beneficiary. The contract is between Michael and Jackson Auto Sales, therefore only Michael has the right to sue for breach of contract under the terms of the agreement. Alexander may only sue Michael for the breach of contract because Michael is the promisor.

The duties arising out of a contract are not assigned, however, they are delegated. J is the delegator (the party delegating the duties) and D is the delegatee (the party to whom the duties are delegated). No special form is required to create a valid delegation of duties. The delegator's express intention to make the delegation is only essential for the delegation to be effective. It need not even use the word delegate. Therefore, J's delegation of her duties to D was legitimate.

It is likely that the Thrift Savings and Loan is the intended third party beneficiary of the contract between Hensley and Sylvia. A third party beneficiary is one that benefits directly from the contract of two other parties. The contract is between Sylvia and Hensley, therefore Thrift Savings and Loan has the right to sue Sylvia for breach of contract under the terms of the agreement in order to enforce the promisor's promise to pay the debt. Additionally, since Hensley has assigned the debt to Sylvia, Thrift Savings and Loan may pursue fulfillment against Sylvia. The assignment was not barred by the agreement and if Sylvia is making payments in good faith of her agreement with Hensley, then she has demonstrated the intent to honor the agreement. Sylvia should have notified the Thrift of the assignment; however notice is not legally necessary to establish the validity of the assignment.

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