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Lecture 11

COMM 304 Lecture Notes - Lecture 11: Secondary Liability, Executory Contract, Loan Guarantee

Course Code
COMM 304
Balbinder S.Deo

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Lecture 10
Vince and Peter cannot get together and create a contract in which Elizabeth had to pay 40$.
She is not part of the contract so it is not valid
Joe buys a car in a contract from a dealership, and it costs him $32000
o They want to collect the money from the finance company, the finance company is not
in any relation with Joe
o They would give creditor a discount (also signor) so $27000
Two kinds of assignments, statutory= all the rights are passed to the signee, straight transaction
If the car costs 32000, Joe put down payment of 2000, what is passed on is everything that is to
be paid (30000)=statutory assignment
If only part is passed down, 10000= equitable assignment
o If there is a problem between the signee and signor(Joe and finance company), the
dealership would also be involved
o At this point, dealership or finance company have to tell Joe about assignment contract
o the finance company sends notice, before he makes his first payment, because if they
don’t, they cannot get the first payment, they have to get it from the dealership
the notice is:
copy of contract a which shows that they ?
copy of contract b what they will pay
contract of pay ups
If notice is late to come to Joe, and Joe already made payment, then finance company as to deal
with dealership for payment or portion they are entitled to
Assignment operates in spite of the rule of consideration and pivoty of contract
Fundamental breach of contract=failure to perform of the car, he would rather just pay rent for
the length of time he had it for, return the car and get rest of his money back
If you gave notice before assignment given, you get straight transaction, the same amount
o You sign a contract with lets say the employer but the employees perform the contract
o The problem comes if they didn’t do task drtbivr properly, you can’t sue employees or
liable of negligence, sue the company
If you lease equipment and you bring it back damaged, the rental party should usually have to
compensate, even if its not in contract because it is the normal thing you would expect
Statutes that impose if your contract is silent on issue
Sale of goods act applies if you have not put anything into your contact
If you contact is consumer contact when people buy either for their own use, family or gift, not a
business sale, then consumer protection act will come in and may intervene in the contract
o Terms tat will be implied in unless you have something different in your contract
Sale of goods comprise when there is a sale, money, not where money is paid for services or
tangibles, simply goods
In a sale of goods, you have to know when good belongs to who, stops being a seller and starts
being liable under the buyer
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