Question 1

An unconditional promise to perform is known as a(n):

Accepted Answer

A)  irrevocable offer. 
B)  firm offer. 
C)  covenant. 
D)  estopped promise. 
E)  unconditional offer. 
A)  irrevocable offer. 
B)  firm offer. 
C)  covenant. 
D)  estopped promise. 
E)  unconditional offer.

Question 2

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract,the delegation is called an assumption of duties.

Accepted Answer

A) True 
 B)False

Question 3

The release of one contractual party and the substitution of another party for the released party is called a(n):

Accepted Answer

A)  substitution by law. 
B)  removal and replacement. 
C)  novation. 
D)  adjudication. 
E)  accord and satisfaction. 
A)  substitution by law. 
B)  removal and replacement. 
C)  novation. 
D)  adjudication. 
E)  accord and satisfaction.

Question 4

Brandon,an artist,was commissioned to paint an oil portrait of the governor of Delaware.When Brandon was called away to Europe to paint the portraits of the royal family of Sweden,he asked Cameron,a very famous artist,to totally take over the governor's portrait project.The governor agreed.What has occurred and is it permissible by the courts? What would the result be if the governor did not approve?

Accepted Answer

The governor's approval makes this a nov

Question 5

Which of the following is the false statement?

Accepted Answer

A)  Purely mechanical duties are not delegable. 
B)  In order for a novation agreement to be valid, all three (3) parties involved must agree to the substitution. 
C)  A legal right arising from a breach of contract may be assigned. 
D)  There is a guarantor in a delegation. 
E)  The same right can be assigned more than once. 
A)  Purely mechanical duties are not delegable. 
B)  In order for a novation agreement to be valid, all three (3) parties involved must agree to the substitution. 
C)  A legal right arising from a breach of contract may be assigned. 
D)  There is a guarantor in a delegation. 
E)  The same right can be assigned more than once.

Question 6

A statute of limitations puts a limit on the damages that can be sued for under a contract.

Accepted Answer

A) True 
 B)False

Question 7

How do the American Rule and English rule differ with regard to multiple assignments of rights?

Accepted Answer

When the same rights are assigned to mor

Question 8

If a party to a contract intentionally alters the contract materially,the innocent party may opt either to discharge the contract or to enforce it.

Accepted Answer

A) True 
 B)False

Question 9

In an assumption of duties,the obligee can sue the delegatee and recover damages from the delegatee for nonperformance or negligent performance by the delegatee.

Accepted Answer

A) True 
 B)False

Question 10

Anti-delegation clauses are seldom enforced by the courts.

Accepted Answer

A) True 
 B)False

Question 11

The majority of provisions in contracts are covenants.

Accepted Answer

A) True 
 B)False

Question 12

A promise that contains a condition that must be met before the promise is binding is known as a covenant.

Accepted Answer

A) True 
 B)False

Question 13

What is the defining characteristic of a creditor third-party beneficiary?

Accepted Answer

A)  The benefit received by the third-party beneficiary is a gift. 
B)  The third-party beneficiary has also been delegated a duty. 
C)  The third-party beneficiary was not intended to receive a benefit. 
D)  The third-party beneficiary has preexisting obligations related to the contract. 
E)  The third-party beneficiary status arose out of the assumption of a loan agreement. 
A)  The benefit received by the third-party beneficiary is a gift. 
B)  The third-party beneficiary has also been delegated a duty. 
C)  The third-party beneficiary was not intended to receive a benefit. 
D)  The third-party beneficiary has preexisting obligations related to the contract. 
E)  The third-party beneficiary status arose out of the assumption of a loan agreement.

Question 14

The "American rule" provides that the first assignee to give notice to the obligor prevails.

Accepted Answer

A) True 
 B)False

Question 15

A covenant is an unconditional promise to perform.

Accepted Answer

A) True 
 B)False

Question 16

Third-party beneficiaries usually exist from the inception of a contract.

Accepted Answer

A) True 
 B)False

Question 17

Tom signs a contract to purchase Jerry's house.They settle on the house,executing the contract at 10:00 a.m.,and the house is struck by lightning at 2:00 p.m.,burning to the ground as a result.Tom may claim impossibility based on destruction of the subject matter and rescind the contract.

Accepted Answer

A) True 
 B)False

Question 18

What is the defining characteristic of an incidental third-party beneficiary?

Accepted Answer

A)  The benefit received by the donee beneficiary is a gift. 
B)  The donee beneficiary has also been delegated a duty. 
C)  The donee beneficiary was not intended to receive a benefit. 
D)  The donee beneficiary has preexisting obligations related to the contract. 
E)  The donee beneficiary status arose out of the assumption of a loan agreement. 
A)  The benefit received by the donee beneficiary is a gift. 
B)  The donee beneficiary has also been delegated a duty. 
C)  The donee beneficiary was not intended to receive a benefit. 
D)  The donee beneficiary has preexisting obligations related to the contract. 
E)  The donee beneficiary status arose out of the assumption of a loan agreement.

Question 19

When the delegation of a duty is a declaration of duties,the delegatee becomes legally liable to the obligee to perform the duty.

Accepted Answer

A) True 
 B)False

Question 20

When the government enters into a contract on behalf of a taxpayer,the taxpayer is usually what kind of beneficiary?

Accepted Answer

A)  incidental 
B)  covenanted 
C)  creditor 
D)  donee 
E)  conditional 
A)  incidental 
B)  covenanted 
C)  creditor 
D)  donee 
E)  conditional

Exam 13: Third-Party Rights and Discharge

An unconditional promise to perform is known as a(n):

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract,the delegation is called an assumption of duties.

The release of one contractual party and the substitution of another party for the released party is called a(n):

Which of the following is the false statement?

A statute of limitations puts a limit on the damages that can be sued for under a contract.

How do the American Rule and English rule differ with regard to multiple assignments of rights?

If a party to a contract intentionally alters the contract materially,the innocent party may opt either to discharge the contract or to enforce it.

In an assumption of duties,the obligee can sue the delegatee and recover damages from the delegatee for nonperformance or negligent performance by the delegatee.

Anti-delegation clauses are seldom enforced by the courts.

The majority of provisions in contracts are covenants.

A promise that contains a condition that must be met before the promise is binding is known as a covenant.

What is the defining characteristic of a creditor third-party beneficiary?

The "American rule" provides that the first assignee to give notice to the obligor prevails.

A covenant is an unconditional promise to perform.

Third-party beneficiaries usually exist from the inception of a contract.

Tom signs a contract to purchase Jerry's house.They settle on the house,executing the contract at 10:00 a.m.,and the house is struck by lightning at 2:00 p.m.,burning to the ground as a result.Tom may claim impossibility based on destruction of the subject matter and rescind the contract.

What is the defining characteristic of an incidental third-party beneficiary?

When the delegation of a duty is a declaration of duties,the delegatee becomes legally liable to the obligee to perform the duty.

When the government enters into a contract on behalf of a taxpayer,the taxpayer is usually what kind of beneficiary?

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