(Q1) Third Party Contracts, Termination of Contracts, Breach of Contract pg 16,17,18

person not a party to a contract that receives some benefit from it.

loans money to a party of a contract - may sue for breach

receives a gift under a contract - may sue for breach

transferring rights under a contract to a 3rd party; assignor to assignee

transferring your obligation to a 3rd party

• can not transfer personal service contracts • transferor is not relieved of liability • if new party is substituted in for a party and other original party agrees to release the transferor of liability, a new contract is formed and is called a “Novation”

Can be oral or written unless: contract comes within statute of frauds or contract itself states it must be written.

at least two or more parties on at least one side of the contract

two parties agree to perform together as one

each party agrees to perform separately as individuals

each party agrees to perform both individually and together

• Performance: must be substantial and satisfactory to both parties • By Operation of Law: Bankruptcy, expiration of statute of limitations (5 years for verbal, 10 years for written), material alteration of a written contract • Impossibility of Performance: death (can have exceptions), insanity, illegality • Voluntary Agreement to terminate contract

you can either rescind and walk away OR sue for breach of contract

compensatory punitive nominal liquidated

Actual damages you suffer.

money awarded to punish the other party; over or above

breach of contract but no one suffers

amount of money shown in contract if contract is breached

Examples: injunction=perminant, restraining order= temporary, replevin= suite to recover personal property, performance