#1
Under what circumstance can a third party acquire rights under a contract?
When the contracting parties agree to it
ExplanationWhen the parties expressly intend to confer rights upon the third party.
#2
In which scenario is the doctrine of 'privity of contract' most likely to limit the rights of third parties?
When the contract is silent on third-party rights
ExplanationWhen the contract doesn't explicitly confer rights to third parties.
#3
When can a third-party beneficiary enforce a contract if the contracting parties fail to perform their obligations?
Immediately upon the breach of contract
ExplanationThird-party beneficiary can enforce upon the immediate breach of contract.
#4
What is the primary purpose of a third-party beneficiary contract?
To confer benefits upon a third party
ExplanationPrimary purpose is to provide benefits to a third party.
#5
In the context of contracts, what does 'privity of contract' refer to?
The relationship between the contracting parties
ExplanationRefers to the direct relationship between the parties involved in the contract.
#6
Which doctrine allows a third party to enforce a contract even if they are not a party to it?
Doctrine of Promissory Estoppel
ExplanationAllows a third party to enforce a contract based on their detrimental reliance on the promise.
#7
What is the difference between an assignment and a delegation in contract law?
An assignment transfers contractual rights, while a delegation transfers contractual duties
ExplanationAssignment transfers rights, delegation transfers duties in a contract.
#8
What is the term for a situation where a third party benefits from a contract unintentionally, without being specifically named?
Incidental beneficiary
ExplanationRefers to a third party unintentionally benefiting from a contract.
#9
What is the difference between an intended beneficiary and an incidental beneficiary in contract law?
An intended beneficiary is specifically named in the contract, while an incidental beneficiary is not.
ExplanationIntended beneficiary is named, incidental beneficiary is not specified in the contract.
#10
What is the effect of the death of a party involved in a contract on third-party rights?
The death of a party has no impact on third-party rights.
ExplanationDeath of a party does not affect third-party rights.
#11
What is the term for a situation where a third party is specifically identified and intended to benefit from a contract?
Intended beneficiary
ExplanationRefers to a third party explicitly named in the contract to receive benefits.
#12
Which legal concept prevents a party from denying the existence of a contract when a third party has relied on that contract?
Estoppel
ExplanationPrevents a party from denying the existence of a contract when a third party has relied on it to their detriment.
#13
Under what circumstance can a third party sue for damages in a contract to which they are not a party?
If they have a financial interest in the subject matter of the contract
ExplanationWhen the third party has a financial stake in the contract's subject matter.
#14
What is the effect of the novation of a contract involving a third party?
The third party's rights and obligations are extinguished
ExplanationNovation extinguishes the rights and obligations of the original third party.
#15
Under the Uniform Commercial Code (UCC), when can a third-party beneficiary enforce a contract?
If the contract expressly provides for enforcement by the third party
ExplanationThird-party can enforce if the contract explicitly allows for it under the UCC.
#16
What is the concept of 'equitable estoppel' in relation to third-party rights in contracts?
A third party can enforce a contract if it is fair and just to do so.
ExplanationAllows third-party enforcement if it's deemed fair and just.