Question 1

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform?

Accepted Answer

A) condition precedent 
B) condition subsequent 
C) concurrent condition 
D) implied condition 
A) condition precedent 
B) condition subsequent 
C) concurrent condition 
D) implied condition

Question 2

The obligor can raise any personal defenses he or she may have directly against the assignee.

Accepted Answer

A) True 
 B)False

Question 3

Approval clauses require that the ________ approve any assignment of a contract.

Accepted Answer

A) obligee 
B) obligor 
C) assignor 
D) assignee 
A) obligee 
B) obligor 
C) assignor 
D) assignee

Question 4

The promisee is the contracting party who agrees to confer performance for the benefit of the third person.

Accepted Answer

A) True 
 B)False

Question 5

Contracts for the provision of personal services are generally not assignable.

Accepted Answer

A) True 
 B)False

Question 6

An assignment and delegation occurs when there is a transfer of both rights and duties under a contract.

Accepted Answer

A) True 
 B)False

Question 7

Who should provide a notice of assignment to the obligor?

Accepted Answer

A) assignee 
B) assignor 
C) obligee 
D) facilitator 
A) assignee 
B) assignor 
C) obligee 
D) facilitator

Question 8

Which of the following phrases describes the term covenant?

Accepted Answer

A) an unconditional promise to perform 
B) a breach of contract 
C) mutual rescission of a contract 
D) successive assignments of a right 
A) an unconditional promise to perform 
B) a breach of contract 
C) mutual rescission of a contract 
D) successive assignments of a right

Question 9

Unilateral rescission of a contract constitutes a breach of that contract.

Accepted Answer

A) True 
 B)False

Question 10

If the conditions are met, a qualified promise becomes a covenant.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of third-party beneficiaries?

Accepted Answer

A) A creditor beneficiary is an unintended beneficiary. 
B) An intended third-party beneficiary cannot enforce the contract against the promisor. 
C) An incidental beneficiary cannot sue under other people's contracts. 
D) Incidental beneficiary is a third party who is benefitted intentionally. 
A) A creditor beneficiary is an unintended beneficiary. 
B) An intended third-party beneficiary cannot enforce the contract against the promisor. 
C) An incidental beneficiary cannot sue under other people's contracts. 
D) Incidental beneficiary is a third party who is benefitted intentionally.

Question 12

Which of the following is true of an assignment of a right?

Accepted Answer

A) Unconditional assignment of a contract right retains all the assignor's rights. 
B) The obligor is entitled to performance from the assignor. 
C) The assignor loses the right to sue the obligor directly for nonperformance in an unconditional assignment. 
D) The obligor cannot raise personal defenses against the assignee. 
A) Unconditional assignment of a contract right retains all the assignor's rights. 
B) The obligor is entitled to performance from the assignor. 
C) The assignor loses the right to sue the obligor directly for nonperformance in an unconditional assignment. 
D) The obligor cannot raise personal defenses against the assignee.

Question 13

A(n)________ is an original creditor who becomes a beneficiary under the debtor's new contract with another party.

Accepted Answer

A) donee beneficiary 
B) creditor beneficiary 
C) incidental creditor 
D) subsequent assignee 
A) donee beneficiary 
B) creditor beneficiary 
C) incidental creditor 
D) subsequent assignee

Question 14

A covenant is an unconditional promise to perform.

Accepted Answer

A) True 
 B)False

Question 15

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract, the delegation is called a(n)________.

Accepted Answer

A) condition precedent 
B) declaration of duties 
C) express condition 
D) discharge 
A) condition precedent 
B) declaration of duties 
C) express condition 
D) discharge

Question 16

Privity of contract refers to the transfer of contractual rights by an obligee to another party.

Accepted Answer

A) True 
 B)False

Question 17

A legal right that arises out of a breach of contract may be assigned.

Accepted Answer

A) True 
 B)False

Question 18

In a concurrent condition, each party's duty to perform is conditioned on the other party's duty to perform.

Accepted Answer

A) True 
 B)False

Question 19

Lionel Richmond is a soccer player who has a six-year contract with the Christshire United soccer team.Two years into the contract, he meets with an accident which results in the complete amputation of his right leg.On what basis is Richmond discharged from further performance of the contract?

Accepted Answer

A) novation 
B) substituted contract 
C) accord and satisfaction 
D) discharge by impossibility 
A) novation 
B) substituted contract 
C) accord and satisfaction 
D) discharge by impossibility

Question 20

The American rule provides that the first assignment in time prevails, regardless of notice.

Accepted Answer

A) True 
 B)False

Exam 15: Third-Party Rights and Discharge

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform?

The obligor can raise any personal defenses he or she may have directly against the assignee.

Approval clauses require that the ________ approve any assignment of a contract.

The promisee is the contracting party who agrees to confer performance for the benefit of the third person.

Contracts for the provision of personal services are generally not assignable.

An assignment and delegation occurs when there is a transfer of both rights and duties under a contract.

Who should provide a notice of assignment to the obligor?

Which of the following phrases describes the term covenant?

Unilateral rescission of a contract constitutes a breach of that contract.

If the conditions are met, a qualified promise becomes a covenant.

Which of the following is true of third-party beneficiaries?

Which of the following is true of an assignment of a right?

A(n)________ is an original creditor who becomes a beneficiary under the debtor's new contract with another party.

A covenant is an unconditional promise to perform.

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract, the delegation is called a(n)________.

Privity of contract refers to the transfer of contractual rights by an obligee to another party.

A legal right that arises out of a breach of contract may be assigned.

In a concurrent condition, each party's duty to perform is conditioned on the other party's duty to perform.

Lionel Richmond is a soccer player who has a six-year contract with the Christshire United soccer team.Two years into the contract, he meets with an accident which results in the complete amputation of his right leg.On what basis is Richmond discharged from further performance of the contract?

The American rule provides that the first assignment in time prevails, regardless of notice.

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