Question 1

Injunctions are commonly used by courts to force employees to complete their contractual obligations with their employers.

Accepted Answer

A) True 
 B)False  False

Question 2

Cheryl enters into a contract with Gabe.In this contract,Cheryl asks Gabe to pay the money he owes her from the contract to her friend Leah because Leah is having financial troubles.Leah is:

Accepted Answer

A)  a third party creditor beneficiary. 
B)  a third party donee beneficiary. 
C)  a third party incidental beneficiary. 
D)  the promisee in the contract. 
A)  a third party creditor beneficiary. 
B)  a third party donee beneficiary. 
C)  a third party incidental beneficiary. 
D)  the promisee in the contract. B

Question 3

An assignment is valid and enforceable against all parties::

Accepted Answer

A)  from the moment it is made. 
B)  from the moment the assignor notifies the obligor. 
C)  from the moment the assignee notifies the obligor. 
D)  from the moment the obligor is notified from any source. 
A)  from the moment it is made. 
B)  from the moment the assignor notifies the obligor. 
C)  from the moment the assignee notifies the obligor. 
D)  from the moment the obligor is notified from any source. D

Question 4

Amanda buys a vacuum cleaner to use in her home from retailer Andy.Amanda promises to pay for it in six monthly installment of $50 each.Andy assigns the contract to Big Finance Co.who paid value and took without notice of any defense.Big Finance Co.sues Amanda for nonpayment.Amanda has stopped making payments because the vacuum stopped working and Andy refuses to honor the express warranty he made to her at the time of the sale.Generally,any defense that Amanda may have against Andy is good against Big Finance Co.

Accepted Answer

A) True 
 B)False

Question 5

Specific performance is available when the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 6

Norm and Frank have a legal contract that is silent with regard to an assignment of the contract.In order for Norm to assign all or part of his rights under a contract,Frank must grant permission to Norm to make the assignment legally effective.

Accepted Answer

A) True 
 B)False

Question 7

A party may make either an assignment or a delegation,but cannot make both an assignment and a delegation simultaneously.

Accepted Answer

A) True 
 B)False

Question 8

If Casey assigns her rights to receive income from rental property to Errol,then Errol will legally acquire any rights held by Casey to the income.

Accepted Answer

A) True 
 B)False

Question 9

In a construction contract,there is a $1000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Accepted Answer

This type of clause is known as a liquid

Question 10

Most contracts are discharged by mutual agreement.

Accepted Answer

A) True 
 B)False

Question 11

The status of a third party is determined by:

Accepted Answer

A)  the type of contract. 
B)  whether the third party gave consideration. 
C)  the reasonable expectations of the third party. 
D)  the intent of the contracting parties. 
A)  the type of contract. 
B)  whether the third party gave consideration. 
C)  the reasonable expectations of the third party. 
D)  the intent of the contracting parties.

Question 12

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:

Accepted Answer

A)  full performance. 
B)  agreement. 
C)  rescission. 
D)  accord and satisfaction. 
A)  full performance. 
B)  agreement. 
C)  rescission. 
D)  accord and satisfaction.

Question 13

First Bank has agreed to loan Teresa $100,000 for use in her cosmetics business.If Teresa sells the business to Melissa before the loan is consummated,Teresa can assign her right to the loan to Melissa.

Accepted Answer

A) True 
 B)False

Question 14

Andrew Durham was injured in a job-related accident that resulted in a workers' compensation settlement agreement with the employer's insurance carrier,Traveler's Indemnity Company.The settlement agreement required Traveler's to pay Durham $2500 per month for the rest of his life.To finance its obligation,Traveler's purchased an annuity in its name.The settlement agreement required Traveler's approval or consent prior to an assignment of the annuity payments.Durham later decided to open a business and went to a credit union for a $214,000 loan.The credit union loaned the money,taking a security interest in Durham's monthly annuity payments.Traveler's consent was never secured.Was this a valid assignment?

Accepted Answer

Assignments can be made unless: (a)the a

Question 15

Briefly discuss the enforceability of contracts by third parties.

Accepted Answer

Contracts can be enforced by third parti

Question 16

Assume that Jessie and Whole Foods have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons that conform with Whole Foods' green policy..A shortage of paper makes paper cartons much more expensive,so Jessie uses styrofoam cartons and ships the eggs.Whole Foods is entitled to cancel the contract based on this deviation of terms in the contract.

Accepted Answer

A) True 
 B)False

Question 17

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.Under this arrangement the rock group is the:

Accepted Answer

A)  assignor. 
B)  assignee. 
C)  delegator. 
D)  delegatee. 
A)  assignor. 
B)  assignee. 
C)  delegator. 
D)  delegatee.

Question 18

Which statement most accurately describes third party beneficiary rights?

Accepted Answer

A)  A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary. 
B)  If a promisee intended to make a gift to the beneficiary,the beneficiary may not enforce the contract. 
C)  An intended third party beneficiary has no enforceable rights in a contract. 
D)  Incidental beneficiaries have enforceable rights against both contracting parties. 
A)  A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary. 
B)  If a promisee intended to make a gift to the beneficiary,the beneficiary may not enforce the contract. 
C)  An intended third party beneficiary has no enforceable rights in a contract. 
D)  Incidental beneficiaries have enforceable rights against both contracting parties.

Question 19

What does the term "substantial performance" mean? What factors are generally considered when determining whether one of the parties has substantially performed?

Accepted Answer

Substantial performance is performance t

Question 20

The beneficiary of a life insurance policy paid for by the insured would ordinarily be:

Accepted Answer

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

Exam 11: Conclusion to Contracts

Injunctions are commonly used by courts to force employees to complete their contractual obligations with their employers.

Cheryl enters into a contract with Gabe.In this contract,Cheryl asks Gabe to pay the money he owes her from the contract to her friend Leah because Leah is having financial troubles.Leah is:

An assignment is valid and enforceable against all parties::

Specific performance is available when the subject matter of the contract is unique.

Norm and Frank have a legal contract that is silent with regard to an assignment of the contract.In order for Norm to assign all or part of his rights under a contract,Frank must grant permission to Norm to make the assignment legally effective.

A party may make either an assignment or a delegation,but cannot make both an assignment and a delegation simultaneously.

If Casey assigns her rights to receive income from rental property to Errol,then Errol will legally acquire any rights held by Casey to the income.

In a construction contract,there is a $1000 per day estimate of damages for each day that the contract runs over the completion date.The contractor is 30 days late when the job is completed,resulting in a prospective damage award of $30,000.What is this type of clause,and when will it be enforced?

Most contracts are discharged by mutual agreement.

The status of a third party is determined by:

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:

First Bank has agreed to loan Teresa $100,000 for use in her cosmetics business.If Teresa sells the business to Melissa before the loan is consummated,Teresa can assign her right to the loan to Melissa.

Briefly discuss the enforceability of contracts by third parties.

A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.Under this arrangement the rock group is the:

Which statement most accurately describes third party beneficiary rights?

What does the term "substantial performance" mean? What factors are generally considered when determining whether one of the parties has substantially performed?

The beneficiary of a life insurance policy paid for by the insured would ordinarily be:

Introduction to Law

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Courts,Litigation and Alterntive Dispute Resolution

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Contract Impediments

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Introduction to Sales

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Bankruptcy

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Starting a Business: Llcs and Other Option

Life and Death of a Corporation

Government Regulation: Securities and Antitrust

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Real Property and Tenant: Landlord Law

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