1. Transfer of Contractual Obligations Chris Vetter

2. Do Now Jim bought a car from Oriental Motors for $32,000. After a $2000 down payment, the balance, plus a finance charge were to be paid in installments over the next 48 months. Oriental Motors needed money to restore their stock and sold Jim’s contract to a finance company and told Jim to make all installment payments to the finance company. Is this contract legal?

3. Answer It is legal and when Jim was informed about the sale of his contract, he became obligated to make payments to the finance company.

4. Vocab Contractual Rights-something they will receive under a contract Assignor-the party who transfers the contractual right to another Assignee-the party who receives the contractual right Performance-the fulfillment of contractual promises as agreed Contractual Duties-legal obligations created by a contract Delegation of Duties-routine duties being transferred to another party Obligator-the one who owes a duty under a contract

5. Non Assignable Rights A right created under contact that prohibits the transfer of contractual rights Claims for damages for personal injuries Claims against the United States Rights to personal services, especially those of a skilled nature, or when personal trust and confidence are involved Assignments of future wages, as limited by state statutes

6. Obligations If a contractual right is transferred, it doesn’t change the legal rights of the other party to the contract. If you are supposed to pay a finance company, and don’t receive your contractual rights, you aren’t obligated to pay the finance company. If the obligator breaches, the assignee must sue for the breach, not the assignor

7. Closing Question John hired Ron to come to his home and take care of his children while he was at work. Can Ron legally delegate the child care duties to a well qualified third party?

8. Answer Ron cannot delegate this duty because it involves special qualifications of trust and skill