ALTERNATE CASE PROBLEM ANSWERS
CHAPTER 17
THIRD PARTY RIGHTS
17-1A. Assignment
No. The judgment for the bank was affirmed. The court quoted the rule of the Restatement
(Second) of Contracts, Section 328(1), which states: “Unless the language or the circumstances
indicate to the contrary, as in an assignment for security, an assignment of ‘the contract’ or of
‘all my rights under the contract’ or an assignment in similar general terms is an assignment of
the assignor’s rights and a delegation of his unperformed duties under the contract.” In the case
17-2A. Assignment
The appellate court held that the exculpatory clause was clearly enforceable and that the
contract was assignable to Holiday. Thus the summary judgment granted by the trial court was
B-2 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 17
17-3A. Assignment
Aldana won. The law in this area is summarized in the Restatement (Second) of Contracts,
17-4A. Assignment
The state trial court ruled in favor of SBS, and Pino appealed. A state intermediate appellate
17-5A. Assignment
A legal malpractice claim is not assignable. A client’s claim for malpractice arises from a
17-6A. Third party beneficiary
The court denied the government’s motion to dismiss the other plaintiffs. The other investors
argued in part that they were intended third-party beneficiaries of the contract. The court
recognized that “a third party who is an intended beneficiary of a contract may sue to enforce
17-7A. Assignment
The Scotts were entitled to specific performance. The contract originally entered into by
Canfield and Fox Brothers was assignable. Absent an express provision to the contrary,
APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 17 B-3
17-8A. Assignment
The Vermont Supreme Court held that the regulation was invalid. The court pointed out that,
unlike some other states’ lottery statutes, Vermont’s statute did not prohibit assignments of
17-9A. Notice of assignment
The court granted a summary judgment in favor of American Factors, and the county appealed
to a state intermediate appellate court, which affirmed the lower court’s judgment. The appellate
court explained that a person receives notice when “[i]t is duly delivered at the place of business
17–10A. Assignments
No. When the rights under a contract are assigned unconditionally, the rights of the assignor are
extinguished. The third party (the assignee) has a right to demand performance from the other
B-4 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 17
sold, Southern Union no longer owned it and Senna’s right to receive the fee ceased. Thus,