Question 1

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

Accepted Answer

A)  The 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)  The 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 2

An intended third-party can benefit from a contract but cannot legally hold a contracted party liable for its performance.

Accepted Answer

A) True 
 B)False

Question 3

________ 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 4

Ellen,who has a safe driving record,purchases automobile insurance from an insurance company.Which of the following is the accurate reason why Ellen would be disallowed from assigning her rights to be insured to another driver?

Accepted Answer

A)  The assignment would materially alter the risk and duties of the insurance company. 
B)  Claiming insurance is a future right and hence cannot be assigned. 
C)  Insurance is a personal service contract and hence cannot be assigned. 
D)  Personal contracts like insurance are assignable only with the agreement of all parties involved in the contract. 
A)  The assignment would materially alter the risk and duties of the insurance company. 
B)  Claiming insurance is a future right and hence cannot be assigned. 
C)  Insurance is a personal service contract and hence cannot be assigned. 
D)  Personal contracts like insurance are assignable only with the agreement of all parties involved in the contract.

Question 5

If an assignee fails to provide a notice of assignment,the obligor cannot be sued for performing according to the original contract.

Accepted Answer

A) True 
 B)False

Question 6

A transfer of contractual duties by an obligor to another party for performance is called a(n)________.

Accepted Answer

A)  accord 
B)  assignment 
C)  delegation 
D)  satisfaction 
A)  accord 
B)  assignment 
C)  delegation 
D)  satisfaction

Question 7

In case of a condition precedent,if the event does not occur,no duty to perform the contract arises.

Accepted Answer

A) True 
 B)False

Question 8

If an obligor continues to make payments to an assignor in spite of receiving notice from an assignee,________.

Accepted Answer

A)  the assignee is liable to the assignor for nonperformance 
B)  the assignee can sue the obligor for recovery 
C)  the assignor loses his or her right to performance from the obligor 
D)  the assignee can recover payment from both the assignor and the obligor 
A)  the assignee is liable to the assignor for nonperformance 
B)  the assignee can sue the obligor for recovery 
C)  the assignor loses his or her right to performance from the obligor 
D)  the assignee can recover payment from both the assignor and the obligor

Question 9

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 Celeste about the assignment?

Accepted Answer

A)  a notary public 
B)  Larry 
C)  Karen's attorney 
D)  the authority who drafted the contract 
A)  a notary public 
B)  Larry 
C)  Karen's attorney 
D)  the authority who drafted the contract

Question 10

It is legal for some contracts to contain clauses that require the obligor to approve any assignment of the contract.

Accepted Answer

A) True 
 B)False

Question 11

James hires Franco for a painting job.Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period.Two weeks into the job,James finds out that Franco is also working for a painting agency two blocks away and terminates his employment.This is an instance of ________ terminating the 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 12

________ is an objective test that applies to commercial contracts and contracts involving mechanical fitness.

Accepted Answer

A)  Reasonable person test 
B)  Personal satisfaction test 
C)  Express condition test 
D)  Cognitive inventory test 
A)  Reasonable person test 
B)  Personal satisfaction test 
C)  Express condition test 
D)  Cognitive inventory test

Question 13

The usual period for bringing a lawsuit for breach of contracts is one to five years.

Accepted Answer

A) True 
 B)False

Question 14

The transfer of contractual rights by an obligee to another party is known as a(n)________.

Accepted Answer

A)  assignment 
B)  accommodation 
C)  delegation 
D)  substitution 
A)  assignment 
B)  accommodation 
C)  delegation 
D)  substitution

Question 15

Which of the following is used to resolve a case where the obligee fraudulently makes successive assignments of the same right to several assignees?

Accepted Answer

A)  the English rule 
B)  the no contact rule 
C)  the exclusionary rule 
D)  the gag rule 
A)  the English rule 
B)  the no contact rule 
C)  the exclusionary rule 
D)  the gag rule

Question 16

An implied-in-fact condition exists if the parties expressly agree on it.

Accepted Answer

A) True 
 B)False

Question 17

A(n)________ occurs when there is a transfer of both rights and duties under a contract.

Accepted Answer

A)  assignment and delegation 
B)  declaration of duties 
C)  assumption of duties 
D)  discharge 
A)  assignment and delegation 
B)  declaration of duties 
C)  assumption of duties 
D)  discharge

Question 18

"An aggrieved party can bring to suit a breach of contract any time after the breach has been made." Discuss an argument for or against this statement with an example.

Accepted Answer

Every state has a statute of limitations

Question 19

Which of the following is a duty that can be delegated despite an anti-delegation clause?

Accepted Answer

A)  need of unique expertise 
B)  exercise of personal skills 
C)  payment of money 
D)  requirement of subjective discretion 
A)  need of unique expertise 
B)  exercise of personal skills 
C)  payment of money 
D)  requirement of subjective discretion

Question 20

Which of the following is true about accord and satisfaction?

Accepted Answer

A)  It usually arises in settlement of a dispute under the original contract. 
B)  It brings a new third party into the contract. 
C)  It discharges the original contract's duties upon reaching the accord. 
D)  It cannot be enforced by a party in the contract. 
A)  It usually arises in settlement of a dispute under the original contract. 
B)  It brings a new third party into the contract. 
C)  It discharges the original contract's duties upon reaching the accord. 
D)  It cannot be enforced by a party in the contract.

Exam 13: Third-Party Rights and Discharge

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

An intended third-party can benefit from a contract but cannot legally hold a contracted party liable for its performance.

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

Ellen,who has a safe driving record,purchases automobile insurance from an insurance company.Which of the following is the accurate reason why Ellen would be disallowed from assigning her rights to be insured to another driver?

If an assignee fails to provide a notice of assignment,the obligor cannot be sued for performing according to the original contract.

A transfer of contractual duties by an obligor to another party for performance is called a(n)________.

In case of a condition precedent,if the event does not occur,no duty to perform the contract arises.

If an obligor continues to make payments to an assignor in spite of receiving notice from an assignee,________.

It is legal for some contracts to contain clauses that require the obligor to approve any assignment of the contract.

________ is an objective test that applies to commercial contracts and contracts involving mechanical fitness.

The usual period for bringing a lawsuit for breach of contracts is one to five years.

The transfer of contractual rights by an obligee to another party is known as a(n)________.

Which of the following is used to resolve a case where the obligee fraudulently makes successive assignments of the same right to several assignees?

An implied-in-fact condition exists if the parties expressly agree on it.

A(n)________ occurs when there is a transfer of both rights and duties under a contract.

"An aggrieved party can bring to suit a breach of contract any time after the breach has been made." Discuss an argument for or against this statement with an example.

Which of the following is a duty that can be delegated despite an anti-delegation clause?

Which of the following is true about accord and satisfaction?

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

Filters