Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning 12.1 Law for Business, 17e by Ashcroft and Ashcroft Chapter 12: Third Parties and Contracts

12.2 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.

12.3 Third Party Beneficiaries Creditor beneficiary: promisee owes an obligation or duty that will be discharged to the extent that promisor performs promise Donee beneficiary: promisee owes no legal duty but to whom performance is a gift Incidental beneficiary: incidentally benefits promisee

12.4 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. Assignor Assignee

12.5 Ways to Involve Third Parties Delegation is the transfer of duties without transfer of rights. Only when performance is standardized may one delegate its performance to another.

12.6 Technicalities of Assignment Notice – notice need not be given to other party in order to make the assignment effective as between the assignor and the assignee Form – an assignment may be made either by operation of law or by the act of the parties Effect – assignee does not receive any greater right or interest than the assignor held.

12.7 Implied Warranties of the Assignor That the assignor is the true owner of the right That the right is valid and subsisting at the time the assignment is made That there are no defenses available to the debtor that have not been disclosed to the assignee

12.8 Types of Third Party Contracts Joint contracts - obligate two or more people together toward performance Several contracts - when parties agree to perform the same obligation Joint and several contracts - bind two or more people jointly and severally

12.9 Make sure you understand the concepts in this chapter. The End

Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 14: Nature of Personal Property

12.11 Chapter 14 Objectives Discuss the types of property and how it can be acquired. Explain the difference between lost and abandoned property. Define and give examples of a bailment. Distinguish among the three types of bailment.

12.12 Personal Property Personal property – movable property or interests in land other than complete ownership. Tangible personal property Can be seen, touched, possessed. For example, a book is tangible. Intangible personal property Representation of property that cannot be seen or touched. For example, intellectual rights of a book’s author.

12.13 Acquiring Personal Property Purchase - buyer pays the seller and seller transfers property to buyer Will - someone dies and leaves a written statement on how they want their property conveyed Descent - someone dies without a will and leaves heirs to receive property Gift - transfer made without consideration in return

12.14 Acquiring Personal Property Accession - acquiring property of another Confusion - inseparable mixing of goods of different owners Creation - bring property into existence. Includes patents, copyrights, and trademarks. Abandonment - discarding property with no intention of retrieving it

12.15 Bailment Typical bailment transactions include: A motorist leaves a car with a garage for repair. A family stores its furniture in a storage building. A vacationer leaves a pet with a friend. A student borrows a tuxedo.

12.16 Types of Bailments Bailments for the sole benefit of the bailor Bailments for the sole benefit of the bailee Mutual-benefit bailments

Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning For more information, don’t forget to study the cases and to log onto the Web sites listed in the textbook.

Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 15: Special Bailments

12.19 Chapter 15 Objectives Explain what a carrier does and name the two categories of carriers. Identify the exceptions to the normal rule of a common carrier being an insurer of the safety of goods. Discuss the difference between hotelkeepers and boardinghouse keepers explaining the special duties and liabilities of hotelkeepers.

12.20 Classifications of Carriers Private carriers Transport goods or persons for a fee. Trucks, moving vans, ships, delivery services. Common carriers Transport goods or persons for all who apply for that service. Trains, buses, airplanes, ships, subways. Monopolies which are subject to regulation.

12.21 Liability of Common Carriers Acts of God Acts of a public authority Inherent nature of the goods Acts of the shipper Acts of a public enemy

12.22 Limitations on Liability Carrier may limit loss by agreement to a specified sum or percentage of value of goods. Carrier can be exempt from liability because of certain hazards. Carrier can be exempt from delays not his fault.

12.23 Carrier as Bailee Before transportation Carrier liable for only mutual-benefit bailee until goods are transported. After transportation Consignee has reasonable time to accept delivery of goods

12.24 Bills of Lading Straight, or nonnegotiable Consignee alone is designated to whom goods are to be delivered. Consignee’s rights may be transferred, but third party obtains no greater rights than consignee had. Order, or negotiable Must be presented to carrier before carrier can safely deliver the goods.

12.25 Liability of Carrier Liability starts for a carrier of persons as soon as passengers enter the terminal or waiting platform. Liability lasts for a carrier of persons until departure from the terminal. A carrier of persons assumes a responsibility of reasonable safety.

12.26 Duties of Common Carriers of Persons Duty to provide reasonable accommodations and services Duty to provide reasonable protection to its passengers Duty to provide protection of baggage

12.27 Duties of Hotelkeepers Serve all who apply (hotelkeepers cannot violate the Civil Rights Act of 1964) Protect a guest’s person such as providing fire escapes Care for the guest’s property Exceptions include losses occurring from acts of God, acts of a public enemy, acts of a public authority or acts of the guests

Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning The End! Do you have any questions?