Keep in mind that this does not necessarily mean that you will only be tested on what I highlight. As I said before, all of the material in the chapter is possible test material. Therefore, read the chapter in its entirety. Whereas prior chapters considered contractual situations essentially involving only two parties, this chapter deals with the rights or duties of third parties, namely, persons who are not parties to the contract but who have a right to, or an obligation for, its performance. In an assignment or delegation, the third party s rights or duties arise after the contract is made, whereas in the third situation the third-party beneficiary s rights arise at the time the contract was formed.
Every contract creates both rights and duties.
A person who owes a duty under a contract is an obligor, while a person to whom a contractual duty is owed is an obligee. An assignment of rights is the voluntary transfer to a third party of the rights arising from the contract. The person who is transferring his or her rights is the assignor. The person who is receiving the transferred rights is the assignee. Requirements of an assignment 2.