Question 1

Most types of duties may be delegated.

Accepted Answer

A) True 
 B)False  True

Question 2

A third party beneficiary's status occurs

Accepted Answer

A) after an assignment and delegation. 
B) when the third party is informed of the contract. 
C) when the third party beneficiary agrees to the contract terms. 
D) when the contract is created. 
A) after an assignment and delegation. 
B) when the third party is informed of the contract. 
C) when the third party beneficiary agrees to the contract terms. 
D) when the contract is created. D

Question 3

Once a duty is delegated,it relieves the delegator of his or her own liability to perform the contract.

Accepted Answer

A) True 
 B)False  False

Question 4

Char-Glo Industries contracted with Evergreen Lawn Service to mow and trim the company's lawn.In the contract,Char-Glo included a clause prohibiting Evergreen from delegating its duties.Courts will ordinarily not enforce such a clause.

Accepted Answer

A) True 
 B)False

Question 5

Shirley is an actress under contract with Twentieth Century.Shirley agreed to perform the lead role in a musical to be filmed in Hollywood by Twentieth Century.At the last minute,Twentieth Century decided to scrap the musical and assigned its rights in Shirley to MGM.MGM was planning to film a western in Australia requiring Shirley to spend six months filming in Australia.Can Shirley successfully prevent this assignment?

Accepted Answer

Yes.This assignment of rights would subs

Question 6

An assignment for consideration is irrevocable.

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

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.

Question 9

Brandon orally assigned his right to $100 from a lawn mowing contract to Will as a gift.This assignment is

Accepted Answer

A) not valid because it was not in writing. 
B) valid even though it was oral and there was no consideration from Will. 
C) irrevocable once Brandon has told Will about the gift. 
D) not valid because Will gave no consideration for the assignment. 
A) not valid because it was not in writing. 
B) valid even though it was oral and there was no consideration from Will. 
C) irrevocable once Brandon has told Will about the gift. 
D) not valid because Will gave no consideration for the assignment.

Question 10

Wright Company contracted with the city of St.Louis to train and employ disadvantaged youths.If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths,the youth would

Accepted Answer

A) win, as he is an intended beneficiary. 
B) win, as he is a donor beneficiary. 
C) lose, as he is a creditor beneficiary. 
D) lose, as he is an incidental beneficiary. 
A) win, as he is an intended beneficiary. 
B) win, as he is a donor beneficiary. 
C) lose, as he is a creditor beneficiary. 
D) lose, as he is an incidental beneficiary.

Question 11

Linda assigns to Ben a right to receive rent payments.In terms of Linda's warranty as the assignor,the law implies which of the following?

Accepted Answer

A) that the tenant is solvent 
B) that Linda actually has a right to the rental payments 
C) that the tenant will actually pay 
D) No warranties are implied by law in an assignment. 
A) that the tenant is solvent 
B) that Linda actually has a right to the rental payments 
C) that the tenant will actually pay 
D) No warranties are implied by law in an assignment.

Question 12

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 13

If Velma,as a birthday present,assigns to Jim her contractual right to collect $50 from Wood Co.,this would be a gratuitous assignment.

Accepted Answer

A) True 
 B)False

Question 14

Claims for personal injury are generally assignable.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the potential liability differences between a delegation and a novation.

Accepted Answer

When an obligor delegates duties under a

Question 16

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean,then Dean is a donee beneficiary of the agreement between Ray and Michelle.

Accepted Answer

A) True 
 B)False

Question 17

Garth's Imports sold a car to Wally on credit for $30,000.Garth assigned to Cassandra all of his rights to receive money from Wally.Cassandra did not inform Wally of the assignment.Therefore,Wally continued to make the next three payments directly to Garth.Shortly thereafter,Garth left the country with the money.If Cassandra sues Wally for the missing three payments

Accepted Answer

A) Cassandra will not be able to collect the money from Wally. 
B) Wally is not liable for the three payments because an assignment is not valid unless the obligor is notified. 
C) Wally is liable for the three payments because Cassandra paid consideration for the assignment rights. 
D) Wally cannot raise the defense of previous payment. 
A) Cassandra will not be able to collect the money from Wally. 
B) Wally is not liable for the three payments because an assignment is not valid unless the obligor is notified. 
C) Wally is liable for the three payments because Cassandra paid consideration for the assignment rights. 
D) Wally cannot raise the defense of previous payment.

Question 18

Contract prohibitions against assignments are invalid as a matter of public policy.

Accepted Answer

A) True 
 B)False

Question 19

Molly and Craig are the original parties to a contract.Craig is obligated to design a Website for Molly.They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract.The agreement releases Craig from his obligations under the contract.This agreement is

Accepted Answer

A) a novation. 
B) an accord and satisfaction. 
C) an assignment. 
D) a nullification. 
A) a novation. 
B) an accord and satisfaction. 
C) an assignment. 
D) a nullification.

Question 20

Johann,a well-known musician,agrees to give ten guitar lessons to Elton for $2,000.Nothing in the contract itself prohibits a delegation.If Johann delegates his obligation to Eugene,a second-year musical student and enthusiastic guitar player,then the delegation will probably be

Accepted Answer

A) permitted because contracts may be freely delegated. 
B) permitted because the contract is just for music lessons. 
C) prohibited because the contract is for service from a specific person. 
D) prohibited by the UCC because this is a sale of services. 
A) permitted because contracts may be freely delegated. 
B) permitted because the contract is just for music lessons. 
C) prohibited because the contract is for service from a specific person. 
D) prohibited by the UCC because this is a sale of services.

Exam 17: Third Parties

Most types of duties may be delegated.

A third party beneficiary's status occurs

Once a duty is delegated,it relieves the delegator of his or her own liability to perform the contract.

Char-Glo Industries contracted with Evergreen Lawn Service to mow and trim the company's lawn.In the contract,Char-Glo included a clause prohibiting Evergreen from delegating its duties.Courts will ordinarily not enforce such a clause.

An assignment for consideration is irrevocable.

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

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

Brandon orally assigned his right to $100 from a lawn mowing contract to Will as a gift.This assignment is

Wright Company contracted with the city of St.Louis to train and employ disadvantaged youths.If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths,the youth would

Linda assigns to Ben a right to receive rent payments.In terms of Linda's warranty as the assignor,the law implies which of the following?

Which statement most accurately describes third party beneficiary rights?

If Velma,as a birthday present,assigns to Jim her contractual right to collect $50 from Wood Co.,this would be a gratuitous assignment.

Claims for personal injury are generally assignable.

Discuss the potential liability differences between a delegation and a novation.

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean,then Dean is a donee beneficiary of the agreement between Ray and Michelle.

Contract prohibitions against assignments are invalid as a matter of public policy.

Johann,a well-known musician,agrees to give ten guitar lessons to Elton for $2,000.Nothing in the contract itself prohibits a delegation.If Johann delegates his obligation to Eugene,a second-year musical student and enthusiastic guitar player,then the delegation will probably be

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

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Dispute Resolution

Crime

Intentional Torts and Business Torts

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Cyberlaw and Privacy

Introduction to Contracts

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Consideration

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Written Contracts

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

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Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Agency Law

Employment and Labor Law

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Starting a Business: LLCs and Other Options

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Life and Death of a Corporation

Management Duties

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