BUS-185 Business Law I, Chapter 14 Third Parties in Contract Law

Assignee

A person to whom an assignment is made. (p. 276)

Assignment

The transfer of a contract right from one person to another. (p. 275)

Assignor

A person who assigns rights or delegates duties under an assignment. (p. 276)

Beneficiary

A third party receiving benefits from a contract made between two other parties. Also, the person named in an insurance policy to receive benefits paid by the insurer in event of a claim. (p. 273)

Creditor beneficiary

A third party to whom one or both contracting parties owe a continuing debt of obligation arising from a contract. (p. 273)

Delegation

The transfer of a contractual duty. (p. 275)

Donee beneficiary

A third party who provides no consideration for the benefits received and who owes the contracting parties no legal duty. (p. 274)

Fraudulent conveyance

A transfer of property with the intent to defraud creditors. (p. 277)

Incidental beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions. (p. 274)

Intended beneficiary

A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached. (p. 273)

Novation

The substitution, by mutual agreement, of another party for one of the original parties to a contract. (p. 284)

Obligor

In contract law, the party who is obligated to deliver on a promise or to undertake some act. (p. 276)

Outside party

In contract law, a person who may, in some way, be affected by a contract but who is not one of the contracting parties. Also called third party. (p. 273)

Third party

In contract law, a person who may, in some way, be affected by a contract but who is not one of the contracting parties. Also called outside party. (p. 273)

Third party beneficiary

A third party receiving benefits from a contract made by others. Also called as a beneficiary to the contract. (p. 273)

Warranty

A promise, statement, or other representation that an item has certain qualities; also, an insured's promise to abide by restrictions, especially those written into an insurance policy. Also, an obligation imposed by law that an item will have certain qua