Asked by Frasier Williamson on Apr 29, 2024
Verified
In some states, the vesting of a third party's rights occurs only when the third party learns of the contract and assents to it.
Vesting
The process by which an individual acquires the right to a certain benefit or asset, often used in relation to pension plans and stock options.
Assents
Expressions of approval or agreement.
- Describe the process of creation and the rights associated with a third-party beneficiary within a contract.
- Understand the juridical effects and obligations associated with assignments and delegations.
Verified Answer
NH
Nazia HicksMay 01, 2024
Final Answer :
True
Explanation :
This is known as the doctrine of "vesting by knowledge and acceptance" or "vesting by manifestation of assent." In these states, a third party's rights are not vested until they become aware of the contract and give their consent or assent to be bound by its terms.
Learning Objectives
- Describe the process of creation and the rights associated with a third-party beneficiary within a contract.
- Understand the juridical effects and obligations associated with assignments and delegations.