Exam 16: Third Parties to Contracts

Ben promises to sell five acres of his land to Tomas for $8,000. If Ben transfers his right to the $8,000 to Firewood Financial, Ben is the assignee and Tomas is the obligor.

Which of the following is correct with regard to successive assignments of the same right?

The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the assignor but no new or additional rights.

Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita. Brad delivers the signed statement to Glen before Brad dies. The assignment is:

Name four nonassignable contract rights found in Restatement (Second) of Contracts, Section 317(2).

Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment:

In some states, the vesting of a third party's rights occurs only when the third party learns of the contract and assents to it.

Third party rights in contracts can arise by assignment of rights, delegation of duties, or express terms in third party beneficiary contracts.

The party to whom a contractual duty of performance is owed is known as the:

The law governing assignments arises solely from the common law of contracts.

Alma sells her car to Ervin. Since she still has four months left on her automobile insurance policy, she tells Ervin he will be covered for this four-month period under the policy. This purported assignment of her policy is effective as long as she notifies her insurance company about the change of insureds.

The voluntary transfer of a contractual right to a third party is known as a(n):

Bill has a right against Heather and assigns it for $100 to Dan. Later, Bill grants Heather a release. Bill:

Consideration is required in order to have a valid assignment.

Some states have statutes which prohibit an employee from assigning his future wages.

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Under Section 2-210 of the Code, unless circumstances indicate to the contrary, a contract that prohibits an assignment:

The right to property other than money, such as goods or land, is not assignable.

Which of the following is NOT true concerning the requirements for an effective assignment?

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.