Question 1

An incidental beneficiary has the right to enforce a contract.

Accepted Answer

A) True 
 B)False  False

Question 2

Veronica entered into a contract with a local car dealer to have a new convertible sports car delivered to her daughter, Jasmine, as a college graduation present. In this contract, Jasmine 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. B

Question 3

An intended donee beneficiary may enforce the contract against the promisor only.

Accepted Answer

A) True 
 B)False  True

Question 4

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

Accepted Answer

A) True 
 B)False

Question 5

When the rights under a contract are highly personal, they are not assignable.

Accepted Answer

A) True 
 B)False

Question 6

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the revocability of assignments.

Accepted Answer

When an assignee gives consideration in

Question 8

a. What is a third party beneficiary? 
b. Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary. Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

Accepted Answer

a. A third party beneficiary is one for

Question 9

An assignee's assent is required for any assignment to be valid.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A transfer to a third party of a contractual obligation is known as a(n):

Accepted Answer

A)  assignment of rights. 
B)  delegation of duties. 
C)  revocability of assignment. 
D)  partial assignment. 
A)  assignment of rights. 
B)  delegation of duties. 
C)  revocability of assignment. 
D)  partial assignment.

Question 12

Marlene owes Bailey $750 due June 1. Bailey assigns the debt to Greg on May 1, but neither Bailey nor Greg informs Marlene. On June 1, Marlene pays Bailey. Marlene is fully discharged from her obligation.

Accepted Answer

A) True 
 B)False

Question 13

Identify and discuss the situations in which a delegation of duties is not permitted.

Accepted Answer

Though contractual duties generally are

Question 14

Give an example of an assignment of rights and explain the relationship of the parties.

Accepted Answer

An assignment of rights is the voluntary

Question 15

To protect the obligor or the public interest, some contract rights are not assignable.

Accepted Answer

A) True 
 B)False

Question 16

Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise.

Accepted Answer

In an assignment and a delegation, the r

Question 17

A(n) __________ is a third party who obtains possible benefits but no rights under a contract.

Accepted Answer

A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary 
A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary

Question 18

Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold:

Accepted Answer

A)  can sue both Blake and Andrews. 
B)  can sue Blake, but he cannot sue Andrews. 
C)  can sue Andrews, but he cannot sue Blake. 
D)  cannot sue, because he has accepted the benefits of the assignment. 
A)  can sue both Blake and Andrews. 
B)  can sue Blake, but he cannot sue Andrews. 
C)  can sue Andrews, but he cannot sue Blake. 
D)  cannot sue, because he has accepted the benefits of the assignment.

Question 19

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Accepted Answer

A) True 
 B)False

Question 20

A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

Accepted Answer

A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary 
A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary

Exam 16: Third Parties to Contracts

An incidental beneficiary has the right to enforce a contract.

Veronica entered into a contract with a local car dealer to have a new convertible sports car delivered to her daughter, Jasmine, as a college graduation present. In this contract, Jasmine is:

An intended donee beneficiary may enforce the contract against the promisor only.

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

When the rights under a contract are highly personal, they are not assignable.

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Discuss the revocability of assignments.

a. What is a third party beneficiary? b. Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary. Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

An assignee's assent is required for any assignment to be valid.

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

A transfer to a third party of a contractual obligation is known as a(n):

Marlene owes Bailey $750 due June 1. Bailey assigns the debt to Greg on May 1, but neither Bailey nor Greg informs Marlene. On June 1, Marlene pays Bailey. Marlene is fully discharged from her obligation.

Identify and discuss the situations in which a delegation of duties is not permitted.

Give an example of an assignment of rights and explain the relationship of the parties.

To protect the obligor or the public interest, some contract rights are not assignable.

Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise.

A(n) __________ is a third party who obtains possible benefits but no rights under a contract.

Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold:

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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 Wills

Filters