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
A third-party beneficiary who has 'vested' rights under a contract may enforce the contract against the promisor. When do a donee beneficiary's rights vest under the majority rule?
Answer: When the beneficiary learns of the contract and assents to it
Under the majority rule, a donee beneficiary's rights vest when the beneficiary learns of the contract and manifests assent to it.
Paula contracts with Dave for Dave to mow her elderly mother's lawn all summer. Dave fails to perform. Who has standing to sue Dave?
Answer: Both Paula and Paula's mother
Both the promisee (Paula) and the intended third-party beneficiary (Paula's mother) have standing to enforce the contract against the promisor.
Which type of third-party beneficiary acquires NO enforceable rights under a contract?
Answer: Incidental beneficiary
An incidental beneficiary — one whose benefit was not a primary purpose of the contract — acquires no enforceable rights.
A city contracts with a construction company to repair a road. A nearby shop owner benefits from the improved road traffic. The shop owner is best classified as:
Answer: An incidental beneficiary
Because the city and contractor did not intend to benefit the shop owner, the shop owner is an incidental beneficiary with no enforcement rights.
After a third-party beneficiary's rights vest, can the original promisor and promisee modify the contract to eliminate the benefit?
Answer: No, once rights vest the beneficiary's consent is required for modification that impairs those rights
Once a third-party beneficiary's rights have vested, the promisor and promisee cannot modify or rescind the contract to defeat those rights without the beneficiary's consent.
A creditor beneficiary differs from a donee beneficiary primarily in that a creditor beneficiary:
Answer: Is owed a pre-existing obligation by the promisee that the contract is meant to satisfy
A creditor beneficiary is one to whom the promisee owes a pre-existing debt or duty, and the contract is formed to discharge that obligation.