Question

Michelangelo contracts to paint Pope’s two-story house for $5,000. Pope realizes that he will not have sufficient money, so he transfers his rights under this agreement to his neighbor, Van Gogh, who has a three-story house. Van Gogh notifies Michelangelo that Pope’s contract has been assigned to him and demands that Michelangelo paint Van Gogh’s house for $5,000. Is Michelangelo required to do so? Discuss.

Assume that Michelangelo agrees to the assignment of the house-painting contract to Van Gogh. After, Michelangelo fails to perform the contract to paint Van Gogh’s house. Van Gogh sues Pope for damages. Is Pope liable? Discuss.

Answer 1

Michelangelo contracts to paint Pope’s two-story house for $5,000. Pope realizes that he will not have sufficient money, so he transfers his rights under this agreement to his neighbor, Van Gogh, who has a three-story house. Van Gogh notifies Michelangelo that Pope’s contract has been assigned to him and demands that Michelangelo paint Van Gogh’s house for $5,000.

Is Michelangelo required to do so : It purely depends upon the interest of Michelangelo whether he wants to do or he do not wants to do. The pope has transferred his rights to his neighbor Van Gogh, and Van Gogh has accepted the contract. But the contract will not be valid until Michelangelo reviews and signs off the contract with the neighbor Van Gogh.

Contract - Transfer Rights: The transfer right of contract cannot be carried out by one party, it needs to be review and signed off by both the parties and once they are OK and signed off, then only the contract will be acceptable. If both parties had not reviewed and sign off, the contract will not be legally valid.

So here in the case, Pope has transferred the contract to his neighbor as per his rights, but the contract will not be valid unless Michelangelo reviews and sign off the contract. So now it is depend on Michelangelo, to accept the contract with neighbor Van Gogh or not.

Assume that Michelangelo agrees to the assignment of the house-painting contract to Van Gogh. After, Michelangelo fails to perform the contract to paint Van Gogh’s house. Van Gogh sues Pope for damages. No, Pope is not liable for the case, because the current contract is reviewed and signed off by neighbor Van Gigh and Michelangelo both. So this will behave like a new contract between the two new parties and it will not have any legal link/relation with the Pope (initial contractor). Once the contract is transferred, reviewed and signed off by new parties, the old parties do not have any legally liability of the contract terms and conditions.  So Pope is not legally liable for any liability of damages occurred with Michelangelo in competing the contract.