Question 1

Which of the following statements best describes the term "assignment"?

Accepted Answer

A)  It is the conveyance of rights in a contract to a person who is not a party. 
B)  It is the termination and replacement of an old contract. 
C)  It is the transfer of duties alone without a transfer of rights. 
D)  It consists of an assignee who is the party making the assignment. 
A)  It is the conveyance of rights in a contract to a person who is not a party. 
B)  It is the termination and replacement of an old contract. 
C)  It is the transfer of duties alone without a transfer of rights. 
D)  It consists of an assignee who is the party making the assignment. A

Question 2

As a general rule, one's rights under a contract cannot be transferred freely.

Accepted Answer

A) True 
 B)False  False

Question 3

In a joint contract, if a promise is not carried out, the aggrieved party may not sue just one party but both parties.

Accepted Answer

A) True 
 B)False  True

Question 4

A person not party to contract but whom parties intended to benefit is known as a(n) _____.

Accepted Answer

A)  unintentional beneficiary 
B)  incidental beneficiary 
C)  third-party beneficiary 
D)  second-party beneficiary 
A)  unintentional beneficiary 
B)  incidental beneficiary 
C)  third-party beneficiary 
D)  second-party beneficiary

Question 5

An incidental beneficiary is best described as a person:

Accepted Answer

A)  whom parties intended to benefit. 
B)  who is a third-party beneficiary and for whom performance is a gift. 
C)  to whom the promisee owes an obligation or duty. 
D)  who unintentionally benefits from performance of contract. 
A)  whom parties intended to benefit. 
B)  who is a third-party beneficiary and for whom performance is a gift. 
C)  to whom the promisee owes an obligation or duty. 
D)  who unintentionally benefits from performance of contract.

Question 6

A contract can never be described as being both joint and several.

Accepted Answer

A) True 
 B)False

Question 7

In the event of bankruptcy, the law assigns the rights and duties of the debtor to the trustee in bankruptcy.

Accepted Answer

A) True 
 B)False

Question 8

Allen was hired by Jake to paint his house. However, Allen could not complete the task and hired Jim to step in for him. The original contract between Allen and Jake still remained the same. In this scenario, Allen is engaged in _____.

Accepted Answer

A)  novation 
B)  delegation 
C)  assignment 
D)  rescission 
A)  novation 
B)  delegation 
C)  assignment 
D)  rescission

Question 9

Only when performance is standardized, may one delegate its performance to another.

Accepted Answer

A) True 
 B)False

Question 10

At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract.

Accepted Answer

A) True 
 B)False

Question 11

Explain novation.

Accepted Answer

The termination of a contract and substi

Question 12

Express words must be used to show that a several contract is intended.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements best describes a several contract?

Accepted Answer

A)  It is a contract entitling two individuals together for performance. 
B)  It is a contract where two or more people individually agree to perform an obligation. 
C)  It is a contract in which express words cannot be used to show that the contract is intended. 
D)  It is a contract in which individual agreements are contained in separate documents. 
A)  It is a contract entitling two individuals together for performance. 
B)  It is a contract where two or more people individually agree to perform an obligation. 
C)  It is a contract in which express words cannot be used to show that the contract is intended. 
D)  It is a contract in which individual agreements are contained in separate documents.

Question 14

A joint contract is one in which:

Accepted Answer

A)  not more than two parties can be involved. 
B)  parties promise to do their individual part of the performance. 
C)  parties are not collectively entitled to the performance of another party. 
D)  each obligor is bound for the performance of the entire obligation. 
A)  not more than two parties can be involved. 
B)  parties promise to do their individual part of the performance. 
C)  parties are not collectively entitled to the performance of another party. 
D)  each obligor is bound for the performance of the entire obligation.

Question 15

A novation does not need to be in writing and can be implied from the parties' actions.

Accepted Answer

A) True 
 B)False

Question 16

The term delegation describes a transfer of rights.

Accepted Answer

A) True 
 B)False

Question 17

A creditor beneficiary is one to whom the promisee owes no duty but for whom performance is a gift.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following warranties does an assignor make when he assigns rights under a contract to an assignee for value?

Accepted Answer

A)  That the assignee is the true owner of the right 
B)  That the right is invalid at the time the assignment is made 
C)  That there are no defenses available to the debtor that have not been disclosed to the assignee 
D)  That if the assignor commits a breach of warranty, the assignee cannot seek to recover any loss from the assignor 
A)  That the assignee is the true owner of the right 
B)  That the right is invalid at the time the assignment is made 
C)  That there are no defenses available to the debtor that have not been disclosed to the assignee 
D)  That if the assignor commits a breach of warranty, the assignee cannot seek to recover any loss from the assignor

Question 19

Blake agreed to renovate Jane's house, and they drafted a written contract. However, Blake was unable to complete the renovation due to an accident. Blake's friend, Tom, agreed to complete the job, and Jane agreed to release Blake from the contract. The terms of the old contract remained the same. This process of substitution of a contract is known as a(n) _____.

Accepted Answer

A)  rescission 
B)  novation 
C)  option 
D)  counteroffer 
A)  rescission 
B)  novation 
C)  option 
D)  counteroffer

Exam 12: Third Parties and Contracts

Which of the following statements best describes the term "assignment"?

As a general rule, one's rights under a contract cannot be transferred freely.

In a joint contract, if a promise is not carried out, the aggrieved party may not sue just one party but both parties.

A person not party to contract but whom parties intended to benefit is known as a(n) _____.

An incidental beneficiary is best described as a person:

A contract can never be described as being both joint and several.

In the event of bankruptcy, the law assigns the rights and duties of the debtor to the trustee in bankruptcy.

Allen was hired by Jake to paint his house. However, Allen could not complete the task and hired Jim to step in for him. The original contract between Allen and Jake still remained the same. In this scenario, Allen is engaged in _____.

Only when performance is standardized, may one delegate its performance to another.

At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract.

Explain novation.

Express words must be used to show that a several contract is intended.

Which of the following statements best describes a several contract?

A joint contract is one in which:

A novation does not need to be in writing and can be implied from the parties' actions.

The term delegation describes a transfer of rights.

A creditor beneficiary is one to whom the promisee owes no duty but for whom performance is a gift.

Which of the following warranties does an assignor make when he assigns rights under a contract to an assignee for value?

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

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