Question 1

As a general rule regarding assignments,one may assign ________ to a third party.

Accepted Answer

A) rights and liabilities 
B) rights but not liabilities 
C) obligations and benefits 
D) obligations but not benefits 
E) liabilities but not rights 
A) rights and liabilities 
B) rights but not liabilities 
C) obligations and benefits 
D) obligations but not benefits 
E) liabilities but not rights B

Question 2

Where an assignment of a debt is equitable only,

Accepted Answer

A) the assignee alone can sue the debtor to enforce payment. 
B) both the assignor and assignee must sue together to enforce the payment. 
C) the assignor alone can sue the debtor to enforce payment. 
D) none of the above 
E) all of the above 
A) the assignee alone can sue the debtor to enforce payment. 
B) both the assignor and assignee must sue together to enforce the payment. 
C) the assignor alone can sue the debtor to enforce payment. 
D) none of the above 
E) all of the above B

Question 3

Which of the following is NOT a trust arrangement?

Accepted Answer

A) a mother transferring assets to provide for her infant should she pass away 
B) your broker requiring sufficient funds in your account to cover a deficit 
C) property of a bankrupt being transferred to a trustee 
D) a corporation transferring the title to fixed assets to a trustee for bondholders as security for the payment of the bonds 
E) parents setting up a fund for the education of their children 
A) a mother transferring assets to provide for her infant should she pass away 
B) your broker requiring sufficient funds in your account to cover a deficit 
C) property of a bankrupt being transferred to a trustee 
D) a corporation transferring the title to fixed assets to a trustee for bondholders as security for the payment of the bonds 
E) parents setting up a fund for the education of their children B

Question 4

Vicarious performance is where

Accepted Answer

A) a third party performs an obligation in place of another person who is ultimately liable for proper performance. 
B) an employee performs an obligation in place of another employee and the performing employee is liable for proper performance. 
C) parties to a contract enter into another agreement that has the effect of transferring the liability to perform to a third party. 
D) an employer performs an obligation in place of its employee and is liable for proper performance. 
E) parties to a contract agree to terminate a contract and substitute a new contract in place of the old one. 
A) a third party performs an obligation in place of another person who is ultimately liable for proper performance. 
B) an employee performs an obligation in place of another employee and the performing employee is liable for proper performance. 
C) parties to a contract enter into another agreement that has the effect of transferring the liability to perform to a third party. 
D) an employer performs an obligation in place of its employee and is liable for proper performance. 
E) parties to a contract agree to terminate a contract and substitute a new contract in place of the old one.

Question 5

A receiving order is used in

Accepted Answer

A) negotiations. 
B) tort proceedings. 
C) legal proceedings for breach of a sales agreement where the promisee is to receive products from another. 
D) bankruptcy proceedings. 
E) proceedings involving negotiable instruments as a defence to an action on the negotiable instrument. 
A) negotiations. 
B) tort proceedings. 
C) legal proceedings for breach of a sales agreement where the promisee is to receive products from another. 
D) bankruptcy proceedings. 
E) proceedings involving negotiable instruments as a defence to an action on the negotiable instrument.

Question 6

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.Melanie is called a ________ and the children are called ________.

Accepted Answer

A) guardian;trustees 
B) caretaker;trustees 
C) money caretaker;beneficiaries 
D) trustee;beneficiaries 
E) constructive trust;beneficiaries 
A) guardian;trustees 
B) caretaker;trustees 
C) money caretaker;beneficiaries 
D) trustee;beneficiaries 
E) constructive trust;beneficiaries

Question 7

A Co.is a carrier of goods.A Co.uses a standard form contract that contains a provision which states that the risk of loss is to be borne by the owner of the goods and that A Co.will not be held liable for its negligence or the negligence of its employees.In the course of carrying B's goods,one of A Co.'s employees is negligent and the goods are damaged.In this situation,

Accepted Answer

A) only the employee who was negligent will get the benefit of the provision in the contract. 
B) both A Co.and the employee who is negligent will get the benefit of the provision in the contract. 
C) neither A Co.nor the employee will get the benefit of the provision in the contract. 
D) only A Co.gets the benefit of the provision in the contract. 
E) the provision in the contract is void as against public policy. 
A) only the employee who was negligent will get the benefit of the provision in the contract. 
B) both A Co.and the employee who is negligent will get the benefit of the provision in the contract. 
C) neither A Co.nor the employee will get the benefit of the provision in the contract. 
D) only A Co.gets the benefit of the provision in the contract. 
E) the provision in the contract is void as against public policy.

Question 8

A policy of life insurance provided that the insurers would pay to the insured or his assignees the sum of $1000.00 if he died before July 31,1926.The insured assigned the benefit of the policy to his wife and gave written notice of the assignment to the insurers.The policy was later extended,on the payment of an additional premium,for a further three months,but the benefit of the extension was not assigned to the wife.The insured died within the three-month extension period and the matter went to court on the issue of whether or not the wife benefited from the extension of the policy so as to be entitled to the insurance money.In this case,

Accepted Answer

A) the rule regarding notice of an assignment was not followed. 
B) the extension of the policy was for the benefit of the wife and a trust had been created in her favour so as to entitle her to the insurance money. 
C) the intention of the insured was not to benefit his wife,so she gets nothing. 
D) the normal rule of privity applies and the wife gets nothing. 
E) none of the above 
A) the rule regarding notice of an assignment was not followed. 
B) the extension of the policy was for the benefit of the wife and a trust had been created in her favour so as to entitle her to the insurance money. 
C) the intention of the insured was not to benefit his wife,so she gets nothing. 
D) the normal rule of privity applies and the wife gets nothing. 
E) none of the above

Question 9

Explain the phrase "an assignee takes subject to equities."

Accepted Answer

One of the fundamental rules is that an

Question 10

How has the privity of contract rule been modified with respect to insurance?

Accepted Answer

The privity of contract rule means that

Question 11

Ted provides lawn care services to a number of customers.He cannot personally perform all of his obligations under each contract,so he arranges for third parties to do some of the work.In these circumstances,Ted cannot

Accepted Answer

A) assign his contractual obligations to the third parties. 
B) pay the third parties any more than the contract price. 
C) fail to advise his customers that third parties are performing the work. 
D) take a vacation while the work is being performed. 
E) hire his own employees to do the work. 
A) assign his contractual obligations to the third parties. 
B) pay the third parties any more than the contract price. 
C) fail to advise his customers that third parties are performing the work. 
D) take a vacation while the work is being performed. 
E) hire his own employees to do the work.

Question 12

When the assignment is merely part of a debt,the assignment is an equitable and not statutory assignment.

Accepted Answer

A) True 
 B)False

Question 13

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called ________ and Melanie is a ________.

Accepted Answer

A) deposit;trustee 
B) trust;trustee 
C) fund;trustee 
D) endowment;money caretaker 
E) fund;constructive trust 
A) deposit;trustee 
B) trust;trustee 
C) fund;trustee 
D) endowment;money caretaker 
E) fund;constructive trust

Question 14

Landlord and tenant entered into a five-year lease.One year after the lease began,tenant assigned its rights under the lease to assignee.Two years after taking possession of the premises,assignee stopped paying rent to landlord.In order to recover rent due,landlord has a right to sue

Accepted Answer

A) tenant,but only if assignee is bankrupt. 
B) tenant. 
C) tenant,but only if at the time of the assignment,tenant agreed to be bound. 
D) assignee. 
E) assignee and tenant. 
A) tenant,but only if assignee is bankrupt. 
B) tenant. 
C) tenant,but only if at the time of the assignment,tenant agreed to be bound. 
D) assignee. 
E) assignee and tenant.

Question 15

The right to intangible property is known as

Accepted Answer

A) intangible property right. 
B) equitable assignment of property. 
C) a chose in action. 
D) a chose of property. 
E) a chose in possession. 
A) intangible property right. 
B) equitable assignment of property. 
C) a chose in action. 
D) a chose of property. 
E) a chose in possession.

Question 16

The effect of the doctrine of privity of contract is that a unilateral contract is unenforceable against the promisee.

Accepted Answer

A) True 
 B)False

Question 17

The right to tangible property that can be possessed is known as

Accepted Answer

A) assignment of rights. 
B) a chose in action. 
C) chattel property rights. 
D) a chose in possession. 
E) equitable assignment. 
A) assignment of rights. 
B) a chose in action. 
C) chattel property rights. 
D) a chose in possession. 
E) equitable assignment.

Question 18

Briefly explain the general rule of contract that gives rise to the concept of privity of contract.

Accepted Answer

The general rule is that a contract does

Question 19

Landlord and Tenant entered into a five-year lease.One year later,Landlord sold the premises to Purchaser.Purchaser is bound by the lease.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following best demonstrates the concept of vicarious liability?

Accepted Answer

A) Jack is employed by Jim as a trainee mechanic.Jack goes to a party on the weekend and is asked by a friend,Mary,to check her car that won't start.Jack checks the car.A few minutes after Mary drives away,the car's ignition explodes injuring Mary. 
B) A man's dog runs out of the house and mauls a letter carrier. 
C) A cow leaves its pasture,walks into the garden of another farmer and destroys all the farmer's crops. 
D) Jack is employed by Jim as a trainee mechanic.Jim's sister,Maggie,brings her car to the shop.It has an engine problem.Jack has never worked on a car's engine before.Jim asks Jack to work on the engine.Jack works on the engine.Later when Maggie drives off in the car,the engine explodes injuring Maggie. 
E) Jack is injured on the job as a result of slipping on oil in the shop. 
A) Jack is employed by Jim as a trainee mechanic.Jack goes to a party on the weekend and is asked by a friend,Mary,to check her car that won't start.Jack checks the car.A few minutes after Mary drives away,the car's ignition explodes injuring Mary. 
B) A man's dog runs out of the house and mauls a letter carrier. 
C) A cow leaves its pasture,walks into the garden of another farmer and destroys all the farmer's crops. 
D) Jack is employed by Jim as a trainee mechanic.Jim's sister,Maggie,brings her car to the shop.It has an engine problem.Jack has never worked on a car's engine before.Jim asks Jack to work on the engine.Jack works on the engine.Later when Maggie drives off in the car,the engine explodes injuring Maggie. 
E) Jack is injured on the job as a result of slipping on oil in the shop.

Exam 11: Privity of Contract and the Assignment of Contractual Rights

As a general rule regarding assignments,one may assign ________ to a third party.

Where an assignment of a debt is equitable only,

Which of the following is NOT a trust arrangement?

Vicarious performance is where

A receiving order is used in

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.Melanie is called a ________ and the children are called ________.

Explain the phrase "an assignee takes subject to equities."

How has the privity of contract rule been modified with respect to insurance?

Ted provides lawn care services to a number of customers.He cannot personally perform all of his obligations under each contract,so he arranges for third parties to do some of the work.In these circumstances,Ted cannot

When the assignment is merely part of a debt,the assignment is an equitable and not statutory assignment.

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called ________ and Melanie is a ________.

Landlord and tenant entered into a five-year lease.One year after the lease began,tenant assigned its rights under the lease to assignee.Two years after taking possession of the premises,assignee stopped paying rent to landlord.In order to recover rent due,landlord has a right to sue

The right to intangible property is known as

The effect of the doctrine of privity of contract is that a unilateral contract is unenforceable against the promisee.

The right to tangible property that can be possessed is known as

Briefly explain the general rule of contract that gives rise to the concept of privity of contract.

Landlord and Tenant entered into a five-year lease.One year later,Landlord sold the premises to Purchaser.Purchaser is bound by the lease.

Which of the following best demonstrates the concept of vicarious liability?

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

Filters

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.Melanie is called a and the children are called .

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called and Melanie is a .