Question 1

A party who owes a duty of performance under a contract is called the ________.

Accepted Answer

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

Question 2

What happens when an obligor does not get a notice of assignment?

Accepted Answer

When an assignor makes an assignment of

Question 3

Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?

Accepted Answer

A) novation 
B) substituted contract 
C) mutual rescission 
D) accord 
A) novation 
B) substituted contract 
C) mutual rescission 
D) accord

Question 4

If a delegatee has not assumed the duties under a contract, the delegatee is not liable to the obligee for nonperformance.

Accepted Answer

A) True 
 B)False

Question 5

Kimlon Informatics has to recover $5000 from a client for its services.The recovery period is 100 days but Kimlon needs the money immediately.It sells the right of collecting money from its client to Quikcollect, a collection agency.Here, Kimlon Informatics is the ________.

Accepted Answer

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

Question 6

________ refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

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 7

Which of the following is an illustration of the possession of tangible token rule?

Accepted Answer

A) An obligee who is owed $10, 000 assigns the right of collection $5, 000 each to two assignees. 
B) The right of collecting $10, 000 is recorded in the assignee's savings account passbook. 
C) The assignee can re-assign the right only to a sub-assignee selected by the obligee. 
D) An obligee cannot assign a right to collection of more than once. 
A) An obligee who is owed $10, 000 assigns the right of collection $5, 000 each to two assignees. 
B) The right of collecting $10, 000 is recorded in the assignee's savings account passbook. 
C) The assignee can re-assign the right only to a sub-assignee selected by the obligee. 
D) An obligee cannot assign a right to collection of more than once.

Question 8

Nonperformance of a covenant is not considered a breach of contract because a covenant is an unconditional promise.

Accepted Answer

A) True 
 B)False

Question 9

Distinguish between conditions and covenants.

Accepted Answer

A covenant is an unconditional promise t

Question 10

Howard is injured by Penny in a car accident, caused due to Penny's negligence.Which of the following statements holds true for Howard's right to assign?

Accepted Answer

A) Howard cannot assign the recovery of punitive damages from Penny. 
B) Howard can only assign the recovery of his medical expenses from Penny. 
C) Howard's right to sue Penny cannot be assigned. 
D) Howard can only assign his right to take the case to the appellate court. 
A) Howard cannot assign the recovery of punitive damages from Penny. 
B) Howard can only assign the recovery of his medical expenses from Penny. 
C) Howard's right to sue Penny cannot be assigned. 
D) Howard can only assign his right to take the case to the appellate court.

Question 11

Condition subsequent exists when the parties to a contract must render performance simultaneously.

Accepted Answer

A) True 
 B)False

Question 12

When is nonperformance by a contractual party excusable?

Accepted Answer

Nonperformance is excused if a contract

Question 13

The party to whom a duty is owed is the ________.

Accepted Answer

A) delegator 
B) delegatee 
C) obligor 
D) obligee 
A) delegator 
B) delegatee 
C) obligor 
D) obligee

Question 14

Karen borrows $10, 000 from Celeste.Karen is to pay Celeste the principal amount, with 8 percent interest, over five years in 60 equal monthly payments.After one year of receiving proper payments from Karen, Celeste assigns this right to receive future payments to Larry.Who has the duty to notify Juan about the assignment?

Accepted Answer

A) Celeste 
B) Larry 
C) Karen's attorney 
D) the authority who drafted the contract 
A) Celeste 
B) Larry 
C) Karen's attorney 
D) the authority who drafted the contract

Question 15

The party to whom the duty is owed is the delegatee.

Accepted Answer

A) True 
 B)False

Question 16

Explain the process of transfer of rights.

Accepted Answer

The transfer of contractual rights is ca

Question 17

What does the English Rule for successive assignments provide?

Accepted Answer

A) The first assignment in time prevails, regardless of notice. 
B) The first assignment in time prevails, pending notice. 
C) The first assignee to give notice to the obligor prevails. 
D) The first assignee who receives a tangible token prevails. 
A) The first assignment in time prevails, regardless of notice. 
B) The first assignment in time prevails, pending notice. 
C) The first assignee to give notice to the obligor prevails. 
D) The first assignee who receives a tangible token prevails.

Question 18

In the United States, sales contracts and contracts for the payment of money are not assignable.

Accepted Answer

A) True 
 B)False

Question 19

The injured party loses the right to sue if the lawsuit is brought after the ________ expires.

Accepted Answer

A) privity of contract 
B) notice of assignment 
C) future right 
D) statute of limitations 
A) privity of contract 
B) notice of assignment 
C) future right 
D) statute of limitations

Question 20

A reasonable person test is a subjective test that applies to contracts involving personal taste and comfort.

Accepted Answer

A) True 
 B)False

Exam 15: Third-Party Rights and Discharge

A party who owes a duty of performance under a contract is called the ________.

What happens when an obligor does not get a notice of assignment?

Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?

If a delegatee has not assumed the duties under a contract, the delegatee is not liable to the obligee for nonperformance.

Kimlon Informatics has to recover $5000 from a client for its services.The recovery period is 100 days but Kimlon needs the money immediately.It sells the right of collecting money from its client to Quikcollect, a collection agency.Here, Kimlon Informatics is the ________.

________ refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

Which of the following is an illustration of the possession of tangible token rule?

Nonperformance of a covenant is not considered a breach of contract because a covenant is an unconditional promise.

Distinguish between conditions and covenants.

Howard is injured by Penny in a car accident, caused due to Penny's negligence.Which of the following statements holds true for Howard's right to assign?

Condition subsequent exists when the parties to a contract must render performance simultaneously.

When is nonperformance by a contractual party excusable?

The party to whom a duty is owed is the ________.

The party to whom the duty is owed is the delegatee.

Explain the process of transfer of rights.

What does the English Rule for successive assignments provide?

In the United States, sales contracts and contracts for the payment of money are not assignable.

The injured party loses the right to sue if the lawsuit is brought after the ________ expires.

A reasonable person test is a subjective test that applies to contracts involving personal taste and comfort.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

Filters