Question 1

Explain the circumstances in which the nonperformance of contractual duties can be excused.

Accepted Answer

Under certain circumstances,the nonperfo

Question 2

In a delegation,an obligor who transfers his or her duty is called a(n)________.

Accepted Answer

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

Question 3

According to the accord and satisfaction agreement,the duties under the original contract is discharged when the ________.

Accepted Answer

A)  parties do not agree to the accord 
B)  alternative contract is not satisfied 
C)  original contract is suspended 
D)  accord is performed 
A)  parties do not agree to the accord 
B)  alternative contract is not satisfied 
C)  original contract is suspended 
D)  accord is performed

Question 4

A contracting party's legal obligation to perform the duties specified in the contract can be discharged by the operations of law.

Accepted Answer

A) True 
 B)False

Question 5

A(n)________ refers to a contracting party who directs that the benefit be conferred on another person.

Accepted Answer

A)  assignee 
B)  promisor 
C)  promisee 
D)  donee beneficiary 
A)  assignee 
B)  promisor 
C)  promisee 
D)  donee beneficiary

Question 6

An obligor has the rights to receive the performance under a contract.

Accepted Answer

A) True 
 B)False

Question 7

The destruction of the subject matter of a contract prior to performance is an example of an objective impossibility that excuses performance.

Accepted Answer

A) True 
 B)False

Question 8

In the United States,the contract rights for payment of money can be assigned to third parties.

Accepted Answer

A) True 
 B)False

Question 9

In a novation agreement,an existing party's liability on a contract continues till the new party performs the duties under the contract.

Accepted Answer

A) True 
 B)False

Question 10

The subjective impossibility of the nonperformance of contractual duties excuses the contracted parties from their duties.

Accepted Answer

A) True 
 B)False

Question 11

A creditor beneficiary can enforce either the original contract against the original debtor-promisor or the new contract against the new debtor-promisor.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the consequences of the failure to provide a notice of assignment on the assignee with an example.

Accepted Answer

When an assignor makes an assignment of

Question 13

Explain how the assignment of rights facilitates an obligor to assert any defense against the assignor or the assignee.

Accepted Answer

Where there has been a valid assignment

Question 14

A contract between a retailer and a supplier provides that payment is due upon delivery of goods by the supplier.The retailer's duty to pay and the supplier's duty to deliver constitutes ________.

Accepted Answer

A)  an implied condition 
B)  a condition precedent 
C)  a condition subsequent 
D)  concurrent conditions 
A)  an implied condition 
B)  a condition precedent 
C)  a condition subsequent 
D)  concurrent conditions

Question 15

How can a party's duty under a contract be discharged without substituting a third party for an existing party?

Accepted Answer

The parties to a contract may mutually a

Question 16

A creditor beneficiary contract usually arises when the original creditor assigns his or her rights to receive a performance to an intended third party.

Accepted Answer

A) True 
 B)False

Question 17

When an assignor makes an assignment of a right under a contract,the assignee is under a duty to ________.

Accepted Answer

A)  notify the obligor that the performance must be rendered to the assignee 
B)  discharge the original contract between the assignor and the obligor 
C)  assign the right to a subsequent assignee 
D)  render the obligor's performance to the assignor 
A)  notify the obligor that the performance must be rendered to the assignee 
B)  discharge the original contract between the assignor and the obligor 
C)  assign the right to a subsequent assignee 
D)  render the obligor's performance to the assignor

Question 18

Which of the following is true of discharge of performance by agreement?

Accepted Answer

A)  A partially executed contract cannot be rescinded. 
B)  Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one. 
C)  A party is allowed to rescind a contract without the consent of the other party. 
D)  Unilateral rescission is not regarded as breach of contract. 
A)  A partially executed contract cannot be rescinded. 
B)  Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one. 
C)  A party is allowed to rescind a contract without the consent of the other party. 
D)  Unilateral rescission is not regarded as breach of contract.

Question 19

Excuse of nonperformance due to natural disasters is typically covered under a force majeure clause.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 13: Third-Party Rights and Discharge

Explain the circumstances in which the nonperformance of contractual duties can be excused.

In a delegation,an obligor who transfers his or her duty is called a(n)________.

According to the accord and satisfaction agreement,the duties under the original contract is discharged when the ________.

A contracting party's legal obligation to perform the duties specified in the contract can be discharged by the operations of law.

A(n)________ refers to a contracting party who directs that the benefit be conferred on another person.

An obligor has the rights to receive the performance under a contract.

The destruction of the subject matter of a contract prior to performance is an example of an objective impossibility that excuses performance.

In the United States,the contract rights for payment of money can be assigned to third parties.

In a novation agreement,an existing party's liability on a contract continues till the new party performs the duties under the contract.

The subjective impossibility of the nonperformance of contractual duties excuses the contracted parties from their duties.

A creditor beneficiary can enforce either the original contract against the original debtor-promisor or the new contract against the new debtor-promisor.

Discuss the consequences of the failure to provide a notice of assignment on the assignee with an example.

Explain how the assignment of rights facilitates an obligor to assert any defense against the assignor or the assignee.

A contract between a retailer and a supplier provides that payment is due upon delivery of goods by the supplier.The retailer's duty to pay and the supplier's duty to deliver constitutes ________.

How can a party's duty under a contract be discharged without substituting a third party for an existing party?

A creditor beneficiary contract usually arises when the original creditor assigns his or her rights to receive a performance to an intended third party.

When an assignor makes an assignment of a right under a contract,the assignee is under a duty to ________.

Which of the following is true of discharge of performance by agreement?

Excuse of nonperformance due to natural disasters is typically covered under a force majeure clause.

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?

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