CONTRACTUAL DUTIES Chapter 13

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CONTRACTUAL DUTIES(Chapter 13)
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CONTRACTUAL DUTIES

• Assignments
• Delegations
• Discharge

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Assignments

• Contractual Rights
• something you will receive under a contract
• Transfer of Contractual Rights
• What is Assignable?

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Assignments

• a right created under a contract that prohibits
  transfer of the contractual rights
• claims for damages for personal injuries
• claims against the United States
• rights to personal services
• future wages (limited)

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Assignments

• Ford, a dentist, owed Benet 5,000 for office
  furniture. Benet agreed to accept 1,000 in cash
  4,000 in orthodontic services for his
  children.
• Soon after, Benet needed the money so he assigned
  his right to receive dental services to Lakely.

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Assignments

• The Whipple Family bought a house. After a down
  payment of 15,000, the balance, plus finance
  charges, was to be paid to Bank One.
• Bank One needed cash for further investments, so
  they sold Whipples contract to Wells Fargo Bank
  and told Whipple to make all mortgage payments to
  Wells.

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Delegations

• Contractual Duties
• legal obligations created by a contract
• Routine duties transferred to another party
• CANNOT if agreement
• Contract prohibits delegation
• Requires personal skill or talents

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Larry hired Carol to care for his child while
Larry was at work. Could Carol legally delegate
the child care duties to another?
Delegations
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Delegations
While completing the Whipples new home, Builders
Construction had to hire several other
contractors in order to finish work on schedule.
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• Assignments and Delegations(quick review)

• Must notify assignments, not delegations
• Obligor one who owes a duty
• Obligee one who receives the benefits of a duty
• Breach by obligor?
• Assignee must sue -- Assignor not liable

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Discharge

• Termination of duties required as promised
• UCC -- cancellation
• Substantial performance
• Anticipatory breach (default)
• By agreement
• By impossibility
• By operation of law

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You decide! 1

• Aaron contracts with Smith to install a new
  kitchen sink (complete with faucet). Because of
  several other jobs that require his attention, he
  asks Smith if she would accept someone else to
  complete the job with the same terms.
• Can they do this?
• If so, what is it called?
• Discuss any legalities.

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You decide! 2

• You borrow a pretty good sum of money from a
  friend. However, you could not pay the loan back
  on schedule. You offer your friend your fairly
  new stereo system as payment.
• Can you do this?
• If so, what is it called?

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You decide! 3

• Blatz is a famous race car driver. He was
  contracted to drive the 1 car for the ACE Racing
  Team in the big holiday race.
• While transporting the car to the race, the team
  was in an accident and the car was totalled.
• Must Blatz drive for the team?

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You decide! 4

• Sundstrom, a qualified electrician, contracted
  with Rodriguez to rewire his house. Before he
  could begin work, Sundstrom was involved in a
  serious auto accident which left him paralyzed.
• Is performance still required by Sundstrom?
• Why or why not?

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You decide! 5

• Forest owned a landscaping business. He
  contracted to take care Smyths lawn while he was
  away in Alaska. Smyth planned to survey the
  state as part of his autobiography. He had no
  plan or schedule.

Legal? If so, When would the contract terminate?
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You decide! 6

• Casey contracts with Bidders to clear off 10
  acres of land owned by Bidders. A clause in the
  contract allows for a 5 discount if payment is
  made in full before performance begins.
• The contract was properly signed but before both
  parties received copies, Bidders secretly added a
  1 to the 5, thus allowing a 15 discount.
• How much discount is allowed?

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You decide! 7

• A friend is under a 1-year contract to play
  professional football.
• In an automobile accident, he suffers internal
  injuries and is unable to play for the remainder
  of the season.
• Does he remain on the team payroll?

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You decide! 8

• Tippner contracted with Barnell to build a public
  storage facility on land owned by Barnell.
• Before construction began, the city rezoned the
  land restricting the site to residential
  dwellings.
• Can construction begin?
• What if Tippner had begun construction?

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You decide! 9

• In late November, you contract with Jones to
  remodel his kitchen. The job is to be completed
  by December 24th at the latest.
• In mid-December you notify Jones that because of
  several other jobs you cannot begin his job until
  after the new year.
• What have you done?
• What are Jones options?