Lee contracts to paint Sally`s two story house for $2,500. Sally realizes that she will not have sufficient money, so she transfers her rights under this agreement to her neighbor Karen, who has a three-story house. Karen notifies Lee that Sally`s contract has been assigned to her and demands that Lee paint Karens house for $2,500. Is Lee required to do so?1
Third Person and Contracts
3, 4, 5, 7, 9, 11
Due: Nov. 24, 11:59 PM
Lee contracts to paint Sally`s two story house for $2,500. Sally realizes that she will not have
suffiecient money, so she transfers her rights under this agreement to her neighbor Karen, who
has a three-story house. Karen notifies Lee that Sally`s contract has been assigned to her and
demands that Lee paint Karens house for $2,500. Is Lee required to do so?
4. Assume that Lee agrees to the assignment of the house-painting contract to Karen as stated in
question 3. Thereafter Lee fails to perform the contract to paint Karen`s house. Karen sues Sally
for damages. Is Sally liable?
5. Jessie borrows a $1,000 from Thomas and agrees to repay the money in 30 days. Thomas
assigns the right to the $1,000 to Douglass Finance Co. Douglas sues Jessie. Jessie argues that
she had agreed to pay the money only to Thomas and that when she and Thomas had entered into
the transaction there was no intention to benefit Douglas Finance Co. are these objections valid.
7. Helen obtained an insurance policy inuring her life and naming her niece Julie as beneficiary.
Helen died, and about a year later the policy was found in her house. When Julie claimed the
insurance money, the insurer refused to pay on the ground that the policy required the notice of
death to be given to it promptly following the death. Julie claimed that she was not bound by the
time limitation because she had never agreed to it, as she was not a party to the insurance
contract. Is Julie entitled to recover?
9. The New Rochelle Human Society made a contract with the city of New Rochelle to capture
and impound all dogs running at large. Spiegler, a minor, was bitten by some dogs while in her
school yard. She sued the school district of New Rochelle and the Humane Society. With respect
to the Humane Society, she claimed that she was a third-party beneficiary of the contract that the
Humane Society had made with the city. She claimed that she could therefore sue the Humane
Ssociety for its failure to capture the dogs that had bitten her. Was she entitled to recover? [
Spiegler v. School District of the City of New Rochelle,
242 N.Y. S.2d 430 ]
11. Henry was owed $10,000 by Jones Corp. in consideration of the many odd jobs performed
for him over the years by his nephew, Henry assigned the $10,000 claim to his nephew Charles.
and his widow claimed that the assignment was ineffective so that the claim was
part of Henry`s estate. She based her assertion on the ground that the past performance rendered
by the nephew was not consideration.
Was the assignment effective?