Question 1

A gratuitous assignment is generally valid and enforceable.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) prohibits both an assignment of rights and a delegation of duties under the contract. 
B) prohibits only a delegation of the delegator's duty of performance and not the assignment of rights. 
C) renders any subsequent assignment ineffective. 
D) All of these. 
A) prohibits both an assignment of rights and a delegation of duties under the contract. 
B) prohibits only a delegation of the delegator's duty of performance and not the assignment of rights. 
C) renders any subsequent assignment ineffective. 
D) All of these.

Question 5

Pedro has a contract to build a garage.He delegates the wiring job to a local electrician who improperly performs it.
Pedro is responsible, even though he delegated the duty.

Accepted Answer

A) True 
 B)False

Question 6

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present.In this contract, Sue is:

Accepted Answer

A) an incidental beneficiary. 
B) a donee beneficiary. 
C) a creditor beneficiary. 
D) an assignor. 
A) an incidental beneficiary. 
B) a donee beneficiary. 
C) a creditor beneficiary. 
D) an assignor.

Question 7

The Restatement adopts the majority American rule and provides that, where there are successive assignments of the same right, the first assignee in point of time prevails.

Accepted Answer

A) True 
 B)False

Question 8

Arthur enters into a contract with Bob as a result of Bob's fraud in the inducement.Under the contract, Bob has the right to the payment of $100.Bob assigns the right to the $100 to Carl.Arthur may assert the defense of fraud in the inducement to avoid paying Carl the $100.

Accepted Answer

A) True 
 B)False

Question 9

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend.The band cannot assign its rights and delegate its duties under this contract.

Accepted Answer

A) True 
 B)False

Question 10

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Accepted Answer

A) True 
 B)False

Question 11

Rick has a contract with a home repair company to paint his house and landscape his yard.When he realizes that he will have some unexpected medical expenses, he calls the home Repair Company to cancel the contract.Rick's next door neighbor can sue Rick to enforce the contract, because if Rick improves his own property, his neighbor's property will also be worth more money.

Accepted Answer

A) True 
 B)False

Question 12

As a general rule, partial assignments of contract rights are not enforceable.

Accepted Answer

A) True 
 B)False

Question 13

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.

Accepted Answer

A) True 
 B)False

Question 14

Notice of an assignment:

Accepted Answer

A) cuts off any defenses based on subsequent agreements between the obligor and assignor. 
B) does not prevent subsequent setoffs of the obligor that arise out of separate matters. 
C) does not bar subsequent counterclaims of the obligor that arise out of separate matters. 
D) has no effect on defenses based on subsequent agreements between the obligor and assignor or on subsequent setoffs and counterclaims of the obligor that arise out of separate matters. 
A) cuts off any defenses based on subsequent agreements between the obligor and assignor. 
B) does not prevent subsequent setoffs of the obligor that arise out of separate matters. 
C) does not bar subsequent counterclaims of the obligor that arise out of separate matters. 
D) has no effect on defenses based on subsequent agreements between the obligor and assignor or on subsequent setoffs and counterclaims of the obligor that arise out of separate matters.

Question 15

A valid assignment requires that notice be given to the obligor.

Accepted Answer

A) True 
 B)False

Question 16

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

Accepted Answer

A) True 
 B)False

Question 17

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following involves an invalid assignment that a court would not enforce?

Accepted Answer

A) An assignment of a savings account accompanied by the delivery of the passbook 
B) An assignment lacking consideration 
C) An assignment of an automobile liability insurance policy accompanied by the delivery of the policy 
D) An assignment in writing signed by the assignor and delivered to the assignee 
A) An assignment of a savings account accompanied by the delivery of the passbook 
B) An assignment lacking consideration 
C) An assignment of an automobile liability insurance policy accompanied by the delivery of the policy 
D) An assignment in writing signed by the assignor and delivered to the assignee

Question 19

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

Accepted Answer

A) It is impossible for an assignor to assign the same right more than once. 
B) In England, the first assignee to notify the obligor prevails. 
C) The Restatement does not recognize the validity of any successive assignments. 
D) The majority rule in the United States is that the first assignee to notify the obligor prevails. 
A) It is impossible for an assignor to assign the same right more than once. 
B) In England, the first assignee to notify the obligor prevails. 
C) The Restatement does not recognize the validity of any successive assignments. 
D) The majority rule in the United States is that the first assignee to notify the obligor prevails.

Question 20

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:

Accepted Answer

A) irrevocable because of the delivery of the statement. 
B) terminated upon Brad's death. 
C) irrevocable because of the signing of the statement. 
D) invalid because it is revocable. 
A) irrevocable because of the delivery of the statement. 
B) terminated upon Brad's death. 
C) irrevocable because of the signing of the statement. 
D) invalid because it is revocable.

Exam 16: Third Parties to Contracts

A gratuitous assignment is generally valid and enforceable.

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

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

Pedro has a contract to build a garage.He delegates the wiring job to a local electrician who improperly performs it. Pedro is responsible, even though he delegated the duty.

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present.In this contract, Sue is:

The Restatement adopts the majority American rule and provides that, where there are successive assignments of the same right, the first assignee in point of time prevails.

Arthur enters into a contract with Bob as a result of Bob's fraud in the inducement.Under the contract, Bob has the right to the payment of $100.Bob assigns the right to the $100 to Carl.Arthur may assert the defense of fraud in the inducement to avoid paying Carl the $100.

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend.The band cannot assign its rights and delegate its duties under this contract.

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

As a general rule, partial assignments of contract rights are not enforceable.

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.

Notice of an assignment:

A valid assignment requires that notice be given to the obligor.

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

Which of the following involves an invalid assignment that a court would not enforce?

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

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:

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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