Reviewing Important Points

1. A party may generally assign rights under a contract as

long as the performance will not thereby be materially changed. One is not released from contractual duties by making an assignment. Some duties may be delegated. They may not be delegated when they involve personal judgment or skill, as with artists and professional experts. When duties are delegated, the original party remains liable for proper performance.

2 An assignee acquires only such rights as the assignor has under the contract.

3 Until notification of assignment is received, the obligor is justified in believing that performance may still be properly made to the original contracting party.

4 Contracts are usually discharged by performance or by substantial performance.

5 A breach of contract generally permits the other party to regard his or her obligation to perform as discharged. The same is true in anticipatory breach of contract. In either case, the victim may seek relief in court.

6 Discharge by agreement of the parties may be accomplished by doing any of the following:

a) including provisions for termination in the contract;

b) rescinding the existing contract;

c) substituting a new contract;

d) replacing a party through novation;

e) making an accord and satisfaction.

7 Difficulty of performance or unforeseen high costs generally do not relieve a promisor of the obligation to perform. However, contractual duties may be discharged because of actual impossibilities when:

a) the subject matter is destroyed;

b) a change in the law makes performance illegal;

c) either party dies or becomes disabled, if the contract required the personal services of the individual.

8 The obligation of one party is discharged when a written contract is materially and intentionally altered by the other party without the consent of the former.

LESSON 9 RIGHTS UNDER A CONTRACT