Question 1

Liabilities may be assigned to a third party.

Accepted Answer

A) True 
 B)False

Question 2

As a general rule regarding assignments,one may assign ________ to a third party.

Accepted Answer

A) rights and liabilities 
B) rights but not liabilities 
C) obligations and benefits 
D) obligations but not benefits 
E) liabilities but not rights 
A) rights and liabilities 
B) rights but not liabilities 
C) obligations and benefits 
D) obligations but not benefits 
E) liabilities but not rights

Question 3

H owes C $700.00.By agreement between H and R,R promises to pay this debt in return for H's undertaking to convey a house to him.C now sues R on his promise.In this situation

Accepted Answer

A) there is no contract between H and C. 
B) there is a contract between H and R. 
C) privity of contract prevents C from succeeding. 
D) there is no contract between R and C. 
E) all of the above 
A) there is no contract between H and C. 
B) there is a contract between H and R. 
C) privity of contract prevents C from succeeding. 
D) there is no contract between R and C. 
E) all of the above

Question 4

A trustee is the legal owner of the property that he or she is administering.

Accepted Answer

A) True 
 B)False

Question 5

Where a promisee has obtained a promise for the benefit of a third party,a constructive trust exists.

Accepted Answer

A) True 
 B)False

Question 6

Parker owes money to both Gregory and Williams.He agrees with Williams to assign to him the whole of his property if Williams will pay the debt due to Gregory.The property is duly assigned,but Williams fails to pay Gregory.Gregory and Parker sue in equity to compel performance of Williams's promise.In this situation

Accepted Answer

A) the lawsuit by Parker and Gregory will succeed. 
B) Gregory acquired an equitable right through the mediation of Parker's agreement. 
C) Parker will be regarded as trustee for Gregory. 
D) Parker need not have joined Gregory in the law suit. 
E) all of the above 
A) the lawsuit by Parker and Gregory will succeed. 
B) Gregory acquired an equitable right through the mediation of Parker's agreement. 
C) Parker will be regarded as trustee for Gregory. 
D) Parker need not have joined Gregory in the law suit. 
E) all of the above

Question 7

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called ________ and Melanie is a ________.

Accepted Answer

A) deposit; trustee 
B) trust; trustee 
C) fund; trustee 
D) endowment; money caretaker 
E) fund; constructive trust 
A) deposit; trustee 
B) trust; trustee 
C) fund; trustee 
D) endowment; money caretaker 
E) fund; constructive trust

Question 8

What is vicarious performance? What types of contracts cannot be vicariously performed?

Accepted Answer

Generally,a promisor cannot escape her o

Question 9

Vicarious performance is where

Accepted Answer

A) a third party performs an obligation in place of another person who is ultimately liable for proper performance. 
B) an employee performs an obligation in place of another employee and the performing employee is liable for proper performance. 
C) parties to a contract enter into another agreement that has the effect of transferring the liability to perform to a third party. 
D) an employer performs an obligation in place of its employee and is liable for proper performance. 
E) parties to a contract agree to terminate a contract and substitute a new contract in place of the old one. 
A) a third party performs an obligation in place of another person who is ultimately liable for proper performance. 
B) an employee performs an obligation in place of another employee and the performing employee is liable for proper performance. 
C) parties to a contract enter into another agreement that has the effect of transferring the liability to perform to a third party. 
D) an employer performs an obligation in place of its employee and is liable for proper performance. 
E) parties to a contract agree to terminate a contract and substitute a new contract in place of the old one.

Question 10

Where an assignment of a debt is equitable only

Accepted Answer

A) the assignee alone can sue the debtor to enforce payment. 
B) both the assignor and assignee must sue together to enforce the payment. 
C) the assignor alone can sue the debtor to enforce payment. 
D) none of the above 
E) all of the above 
A) the assignee alone can sue the debtor to enforce payment. 
B) both the assignor and assignee must sue together to enforce the payment. 
C) the assignor alone can sue the debtor to enforce payment. 
D) none of the above 
E) all of the above

Question 11

The statement that an assignee "takes subject to the equities" between the parties means that

Accepted Answer

A) for the assignment to be enforced it must be an equitable assignment. 
B) the assignee gets no greater rights against the debtor/promisor than the assignor had. 
C) the debtor/promisor can enforce any rights it has against the assignor against the assignee. 
D) the court must decide whether it is fairer for the assignor or the assignee to be paid under the assignment. 
E) before an assignee can enforce an assignment against the debtor/promisor it must demonstrate fairness. 
A) for the assignment to be enforced it must be an equitable assignment. 
B) the assignee gets no greater rights against the debtor/promisor than the assignor had. 
C) the debtor/promisor can enforce any rights it has against the assignor against the assignee. 
D) the court must decide whether it is fairer for the assignor or the assignee to be paid under the assignment. 
E) before an assignee can enforce an assignment against the debtor/promisor it must demonstrate fairness.

Question 12

Mary gives Jack an amount of money to be used to look after her children while she is away.Jack is the legal owner of the money given to him.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is TRUE?

Accepted Answer

A) A trustee is not the legal owner of the property that she or he is administering. 
B) A constructive trust is a relationship that exists between a trustee and beneficiary. 
C) The legal owner of trust property is the true owner of the property. 
D) A trustee is the legal owner of the property that she or he is administering. 
E) The beneficiary of a trust cannot enforce the trust in his or her favour. 
A) A trustee is not the legal owner of the property that she or he is administering. 
B) A constructive trust is a relationship that exists between a trustee and beneficiary. 
C) The legal owner of trust property is the true owner of the property. 
D) A trustee is the legal owner of the property that she or he is administering. 
E) The beneficiary of a trust cannot enforce the trust in his or her favour.

Question 14

Which of the following is NOT an example of an exception to the privity of contract rule?

Accepted Answer

A) a life insurance policy 
B) collateral contracts 
C) the trust 
D) bilateral contracts 
E) the undisclosed principal in an agency 
A) a life insurance policy 
B) collateral contracts 
C) the trust 
D) bilateral contracts 
E) the undisclosed principal in an agency

Question 15

Vicarious performance is a necessity in the real world.Explain.

Accepted Answer

In many contracts,the understanding is t

Question 16

Explain how a transferee of rights under a negotiable instrument may obtain greater rights against the maker of the instrument than an assignee of contractual rights might have against the debtor/promisor under an assignment.

Accepted Answer

Under an assignment of contractual right

Question 17

Briefly explain the general rule of contract that gives rise to the concept of privity of contract.

Accepted Answer

The general rule is that a contract does

Question 18

Explain the concept of a chose in action.

Accepted Answer

A chose in action is a right t

Question 19

When the assignment is merely part of a debt,the assignment is an equitable and not statutory assignment.

Accepted Answer

A) True 
 B)False

Exam 11: Privity of Contract and the Assignment of Contractual Rights

Liabilities may be assigned to a third party.

As a general rule regarding assignments,one may assign ________ to a third party.

H owes C $700.00.By agreement between H and R,R promises to pay this debt in return for H's undertaking to convey a house to him.C now sues R on his promise.In this situation

A trustee is the legal owner of the property that he or she is administering.

Where a promisee has obtained a promise for the benefit of a third party,a constructive trust exists.

Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called ________ and Melanie is a ________.

What is vicarious performance? What types of contracts cannot be vicariously performed?

Vicarious performance is where

Where an assignment of a debt is equitable only

The statement that an assignee "takes subject to the equities" between the parties means that

Mary gives Jack an amount of money to be used to look after her children while she is away.Jack is the legal owner of the money given to him.

Which of the following is TRUE?

Which of the following is NOT an example of an exception to the privity of contract rule?

Vicarious performance is a necessity in the real world.Explain.

Explain how a transferee of rights under a negotiable instrument may obtain greater rights against the maker of the instrument than an assignee of contractual rights might have against the debtor/promisor under an assignment.

Briefly explain the general rule of contract that gives rise to the concept of privity of contract.

Explain the concept of a chose in action.

When the assignment is merely part of a debt,the assignment is an equitable and not statutory assignment.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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Mary wants to be able to take care of her sons when she is away.She decides to give an amount of money to a friend,Melanie,with the instructions that she is to use that money to care for the children when she is away.The money given to Melanie is called and Melanie is a .