Essentials of Business Law Chapter 14

The flashcards below were created by user Drizzle on FreezingBlue Flashcards.

  1. Third-party beneficiary
    A person who is not a party to a contract but is intended by the contracting parties to benefit as a consequence of a contract.
  2. Incidental beneficiary
    A person who will benefit as an indirect consequence of a contract, although that was not the intent of the contracting parties.
  3. Assignment
    The transfer of a contract right to a third party who can receive the benefits of the contract.
  4. Assignor
    The person who transfers his or her rights in an assignment.
  5. Assignee
    The third party to whom rights are transferred in an assignment.
  6. Guarantor
    The party who guarantees the promises assigned.
  7. Personal-service contract
    A contract in which services that require a unique skill, talent, ability, and so forth are provided by a specific person.
  8. Delegation
    The appointment of a third party by a party to an existing contract to perform contractual duties that do not involve unique skills, talents,abilities, and so on.
  9. Bankruptcy
    A condition in which a person or business is legally recognized as unable to pay legitimate debts.
  10. Novation
    A situation in which all parties to a contract agree to a significant change to a contract.
Card Set
Essentials of Business Law Chapter 14
Chapter 14
Show Answers