BUL 3130 Chapter Notes - Chapter 19: Contract, Life Insurance
Document Summary
Most courts consider antiassignment clauses as promises. After making an assignment, the assignor has no right left to the original contract. After making a delegation, however, the delegator is not relieved of his duty to perform. Intended beneficiary- a third party to a contract whom the contracting parties intended to benefit directly from their contract. Most common form is life insurance policies: creditor vs donee beneficiaries: Purpose of creditor contract: contractual performance fulfills an obligation to a third party. Purpose of donee contract: contractual performance gives a gift to a third party. Creditor: beneficiary can enforce rights to a contract if the contract is valid and the rights have vested; beneficiary can enforce rights against the promisor or promisee. The donee beneficiary is in the second-strongest position because she can sue the person who is supposed to perform the contract for her.
