3rd party contract

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Babasab Patil

3rd party contract

Divertissement et humour Business

Quote of the Day ,[object Object],[object Object],[object Object]

Third Party Beneficiary ,[object Object],[object Object],[object Object],Someone who was not a party to the contract but stands to benefit from it.

Third Party Beneficiary (cont’d) ,[object Object],[object Object]

Assignment and Delegation ,[object Object],[object Object],[object Object]

Assignment ,[object Object],[object Object],[object Object],[object Object],[object Object]

How Rights Are Assigned ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Rights of the Parties after Assignment ,[object Object],[object Object]

Assignor’s Warranty ,[object Object],[object Object],[object Object]

Delegation of Duties ,[object Object],[object Object],[object Object],[object Object],[object Object]

Novation ,[object Object],[object Object]

“ A moment’s caution should enable contracting parties to anticipate and realistically appraise any rights and responsibilities of third parties.”

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I was reminded recently of a quote by John F Kennedy: "Leadership and learning are indispensable to each other" As a leader and a trainer, you can see why I would appreciate this one! I fully believe that as a leader my job is not just to develop my team, but also to recognise the potential in them, leverage their existing talents, to encourage them to see themselves for who they are and give them the confidence they need to become the people that they can be. I also think that no matter how much we learn there is still infinitely more that we could learn, but also because when I train someone I want to inspire them to push the boundary of the subject, to learn more than I could ever teach them. Then I was reminded of another quote, this time by Socrates: Education is the kindling of a flame, not the filling of a vessel Since my post a few weeks back on Leadership Quotes, I have received a few requests for quotes on training, development and learning so here goes... Hope you find them as inspiring as I do! As usual, the presentation is available for download on my blog: http://wp.me/p37qal-nK

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Discharge of Obligations A. Discharge of Contract Duties A person is liable to perform agreed-to contract duties until or unless he or she is discharged. If the person fails to perform without being discharged, liability for damages arises. Here we deal with the second-to-the-last of the four broad themes of contract law: how contract duties are discharged. Discharge by Performance (or Nonperformance) of the Duty A contract can be discharged by complete performance or material nonperformance of the contractual duty. There is in every contract “an implied covenant of good faith” (honesty in fact in the transaction) that the parties will deal fairly, keep their promises, and not frustrate the other party’s reasonable expectations of what was given and what received. Full Performance Applies to the promises to answer personally for a duty of the deceased person made by the executor of the will, or by the administrator of the estate if there is no will. Nonperformance, Material Breach Under UCC Section 2-106(4), a party that ends a contract breached by the other party is said to have effected a cancellation. The cancelling party retains the right to seek a remedy for breach of the whole contract or any unperformed obligation. The UCC distinguishes cancellation from termination, which occurs when either party exercises a lawful right to end the contract other than for breach. Substantial Performance Logically, anything less than full performance, even a slight deviation from what is owed, is sufficient to prevent the duty from being discharged and can amount to a breach of contract. But under modern theories, an ameliorative doctrine has developed, called substantial performance: if one side has substantially, but not completely, performed, so that the other side has received a benefit, the nonbreaching party owes something for the value received. Substantial Performance The doctrine of substantial performance recognizes that the contractor has not completed construction, and therefore is in breach of the contract. Under the doctrine, however, the owner cannot use the contractor’s failure to complete the work as an excuse for non-payment. “By reason of this rule a contractor who has in good faith substantially performed a building contract is permitted to sue under the contract, substantial performance being regarded as full performance, so far as a condition precedent to a right to recover thereunder is concerned.” Anticipatory Breach and Demand for Reasonable Assurances When a promisor announces before the time his performance is due that he will not perform, he is said to have committed an anticipatory breach (or repudiation). Another type of anticipatory breach consists of any voluntary act by a party that destroys, or seriously impairs, that party’s ability to perform the promise made to the other side. These same general rules prevail for contracts for the sale of goods under UCC Section 2-610. Related to the concept of anticipat.

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Remedies A valid agreement has been made, the promisor’s duties have not been discharged; he or she has breached the contract. When one party has failed to perform, what are the rights of the parties? Or when the contract has been avoided because of incapacity or misrepresentation and the like, what are the rights of the parties after disaffirmance? These questions form the focus of this chapter. A. Theory of Contract Remedies Purpose of Remedies The fundamental purpose of remedies in noncriminal cases is not to punish the breaching party but—if possible—to put the nonbreaching party in the position he or she would have been in had there been no breach. There are two general categories of remedies—legal and equitable. In the category of legal remedies are damages. Damages are money paid by one party to another; there are several types of damages. In the category of equitable remedies are these three: specific performance, which means a person is ordered to deliver a unique thing (land or a unique personal property, such as a painting or an antique car); injunction, a judicial order directing a person to stop doing what he or she should not do (such as competing with a former employer in violation of a noncompete agreement); and restitution, which means putting the parties back into the position they were in before the contract was made. Parties Have the Power—but Not the Right—to Breach In view of the importance given to the intention of the parties in forming and interpreting contracts, it may seem surprising that the remedy for every breach is not a judicial order that the obligor carry out his or her undertakings. A damage remedy to compensate the maker for out-of-pocket loss or lost profits is sensible; a judicial decree forcing the computer manufacturer to pay for and take delivery of the boards would be wasteful. In general and if possible, the fundamental purpose of contract remedies is to put the nonbreaching party in the position it would have been in had there been no breach. B. Promisee’s Interests Protected by Contract Contract remedies serve to protect three different interests: an expectation interest, a reliance interest, and a restitution interest. A promisee will have one of these and may have two or all three. An expectation interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed. A reliance interest is the loss suffered by relying on the contract and taking actions consistent with the expectation that the other party will abide by it; the remedy is reimbursement that restores the promisee to his position before the contract was made. A restitution interest is that which restores to the promisee any benefit he conferred on the promisor. C. Legal Remedies: Damages The promisee, whom we will hereafter refer to as the nonbreaching party, has the right to damages (a money award), if that is required to make h ...

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