1. 12.1 b a c kn e x t h o m e Chapter 12 Objectives  Discuss the difference between a third- party beneficiary contract and a novation.  Explain the difference between assignment of a contract and delegation of duties under it.  Describe the different types of contracts involving more than two people. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

2. 12.2 b a c kn e x t h o m e Ways to Involve Third Parties Third party beneficiary is one who is not a party to a contract but who will benefit. Explain each of the following:  Creditor beneficiary  Donee beneficiary  Incidental beneficiary Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz

3. 12.3 b a c kn e x t h o m e Ways to Involve Third Parties  Novation is the termination of a contract and substitution of a new one with the same terms but with a new party.  Assignment is the conveyance of rights to a person not a party.  Delegation is the transfer of duties.

4. 12.4 b a c kn e x t h o m e Technicalities of Assignment  Name three technicalities of an assignment and explain how each could be used.  What happens in the event of the death of one party to an assignment?  True or False: An assignment must be written. Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss

5. 12.5 b a c kn e x t h o m e Types of Third Party Contracts Joint contracts - obligate two or more people together toward performance Several contracts - when parties individually agree to perform the same obligation Joint and several contracts - bind two or more people jointly and severally