Question 1

A donee third-party beneficiary has the right to sue the ________ for nonperformance.

Accepted Answer

A)  creditor beneficiary 
B)  promisor 
C)  promisee 
D)  incidental beneficiary 
A)  creditor beneficiary 
B)  promisor 
C)  promisee 
D)  incidental beneficiary

Question 2

Satisfaction of an accord discharges the accord but not the original contract.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor?

Accepted Answer

A)  The assignee's only course of action is to sue the obligee for damages. 
B)  The assignee cannot sue the assignor for damages. 
C)  The obligor's only recourse is to sue the assignee for damages. 
D)  The assignee cannot sue the obligor to recover payment. 
A)  The assignee's only course of action is to sue the obligee for damages. 
B)  The assignee cannot sue the assignor for damages. 
C)  The obligor's only recourse is to sue the assignee for damages. 
D)  The assignee cannot sue the obligor to recover payment.

Question 4

A(n)________ is used if the obligor does not want to deal with or render performance to an unknown third party.

Accepted Answer

A)  anti-assignment clause 
B)  approval clause 
C)  novation agreement 
D)  anti-delegation clause 
A)  anti-assignment clause 
B)  approval clause 
C)  novation agreement 
D)  anti-delegation clause

Question 5

Which of the following is true about a substituted contract?

Accepted Answer

A)  The prior contract can be enforced against a breaching party of a substituted contract. 
B)  A nonbreaching party can sue to enforce its terms against the breaching party. 
C)  Parties in the contract are not liable for nonperformance. 
D)  The contract substitutes a third party for one of the original parties. 
A)  The prior contract can be enforced against a breaching party of a substituted contract. 
B)  A nonbreaching party can sue to enforce its terms against the breaching party. 
C)  Parties in the contract are not liable for nonperformance. 
D)  The contract substitutes a third party for one of the original parties.

Question 6

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 7

Laurie owes $10,000 to Kim.Kim sells her right to collect the money to Josh for $7,500 and after a few weeks to Sam for $7,500.Sam provides Laurie with a notice of assignment,but Josh doesn't.Which assignee would have the legal rights to the assigned right? Provide arguments supporting each assignee.

Accepted Answer

The American rule provides that the firs

Question 8

A direct beneficiary to a contract can lawfully assign his or her expected future rights to an assignee.

Accepted Answer

A) True 
 B)False

Question 9

An incidental beneficiary can hold the parties to a contract legally liable for not rendering performance.

Accepted Answer

A) True 
 B)False

Question 10

If the delegation is a declaration of duties,the delegatee ________.

Accepted Answer

A)  cannot perform the duties of a delegator 
B)  is legally responsible for the satisfaction of the contract 
C)  is not liable to the obligee for nonperformance 
D)  can be sued for negligent performance 
A)  cannot perform the duties of a delegator 
B)  is legally responsible for the satisfaction of the contract 
C)  is not liable to the obligee for nonperformance 
D)  can be sued for negligent performance

Question 11

Discuss a situation where a legal right can be assigned to a third party with an example.

Accepted Answer

The right to sue another party for a vio

Question 12

In a delegation,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 13

Which of the following should provide a notice of assignment to the obligor?

Accepted Answer

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

Question 14

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 15

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.Richmond is discharged from further performance of the contract by ________.

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 16

KnockKnock is a manufacturer of stainless-steel locks which are well known for their durability.The company contacts a new supplier and forms a supply contract.The contract states that KnockKnock would only purchase steel from the supplier if the material supplied was high-grade Type 102 stainless steel.This is an instance of a ________.

Accepted Answer

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

Question 17

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 18

It is illegal for a contract to have more than one condition to trigger or excuse performance.

Accepted Answer

A) True 
 B)False

Question 19

The unconditional assignment of a contract right extinguishes all of the assignee's rights from the contract.

Accepted Answer

A) True 
 B)False

Question 20

There are exceptions to assigning the right to sue a contracted party legally.

Accepted Answer

A) True 
 B)False

Exam 13: Third-Party Rights and Discharge

A donee third-party beneficiary has the right to sue the ________ for nonperformance.

Satisfaction of an accord discharges the accord but not the original contract.

Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor?

A(n)________ is used if the obligor does not want to deal with or render performance to an unknown third party.

Which of the following is true about a substituted contract?

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

A direct beneficiary to a contract can lawfully assign his or her expected future rights to an assignee.

An incidental beneficiary can hold the parties to a contract legally liable for not rendering performance.

If the delegation is a declaration of duties,the delegatee ________.

Discuss a situation where a legal right can be assigned to a third party with an example.

In a delegation,the party to whom a duty is owed is the ________.

Which of the following should provide a notice of assignment to the obligor?

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute 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.Richmond is discharged from further performance of the contract by ________.

Which of the following phrases describes the term "covenant"?

It is illegal for a contract to have more than one condition to trigger or excuse performance.

The unconditional assignment of a contract right extinguishes all of the assignee's rights from the contract.

There are exceptions to assigning the right to sue a contracted party legally.

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