Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:
A) is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so.
B) becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty.
C) cannot create contractual rights in Grant.
D) All of these.

Question

Quizplus · Accepted Answer

When Kellie delegates her duty to Hank, it creates a third-party beneficiary situation where Grant is the intended beneficiary of Kellie's duty. However, Hank is not automatically obligated to perform the duty unless he agrees to do so. Therefore, option A is the correct choice. Option B is incorrect because, even if Hank promises both Kellie and Grant to perform the duty, he cannot be liable to both parties unless there is a novation. Option C is also incorrect because Hank can create contractual rights in Grant, as he becomes the promisor once he agrees to perform the duty.

Kellie Owes a Duty to Grant and Kellie Delegates the Duty