Author Question: Shirley is an actress under contract with Twentieth Century. Shirley agreed to perform the lead role ... (Read 94 times)

justinmsk · **on:** Jun 24, 2018

Shirley is an actress under contract with Twentieth Century. Shirley agreed to perform the lead role in a musical to be filmed in Hollywood by Twentieth Century. At the last minute, Twentieth Century decided to scrap the musical and assigned its rights in Shirley to MGM. MGM was planning to film a western in Australia requiring Shirley to spend six months filming in Australia. Can Shirley successfully prevent this assignment?

Question 2

Briefly discuss the enforceability of contracts by third parties.

sarah_brady415 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Yes. This assignment of rights would substantially change Shirley's duties under the original contract. First of all, her contract with Twentieth Century was for a musical. Shirley could argue that a western is substantially different than a musical. Secondly, under the MGM movie she would have to be on location a substantial distance away from home and Hollywood, where the other movie was to be filmed.

Answer to Question 2

Contracts can be enforced by third parties when they were intended beneficiaries of the contracting parties. Intended beneficiaries would include creditor and donee beneficiaries. Others who might benefit from a contract but the parties did not intend to benefit are called incidental beneficiaries. They have no right to enforce the contract.