Question 1

All but which of the following is true about a delegation of duties?

Accepted Answer

A)  When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee. 
B)  Contractual duties are generally delegable. 
C)  The courts will examine an assignment more closely than a delegation. 
D)  A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract. 
A)  When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee. 
B)  Contractual duties are generally delegable. 
C)  The courts will examine an assignment more closely than a delegation. 
D)  A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract.

Question 2

Will wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n):

Accepted Answer

A)  incidental beneficiary. 
B)  creditor beneficiary. 
C)  donee beneficiary. 
D)  assignee. 
A)  incidental beneficiary. 
B)  creditor beneficiary. 
C)  donee beneficiary. 
D)  assignee.

Question 3

The obligor need not receive notice for an assignment to be valid.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following involves a creditor beneficiary relationship?

Accepted Answer

A)  A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy. 
B)  A contract between an employer and a union representing the employees which is made for the benefit of the employees. 
C)  A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate. 
D)  A contract between a governmental unit and business for services to be rendered to area citizens. 
A)  A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy. 
B)  A contract between an employer and a union representing the employees which is made for the benefit of the employees. 
C)  A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate. 
D)  A contract between a governmental unit and business for services to be rendered to area citizens.

Question 5

Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Accepted Answer

A) True 
 B)False

Question 6

Under Article 2 of the UCC, a right to damages for breach of the whole contract can be assigned despite a contractual provision to the contrary.

Accepted Answer

A) True 
 B)False

Question 7

Name four types of contract rights that are non-assignable.

Accepted Answer

Non-assignable contract rights include t

Question 8

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Accepted Answer

A)  Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business. 
B)  Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers. 
C)  A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm. 
D)  A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident. 
A)  Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business. 
B)  Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers. 
C)  A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm. 
D)  A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

Question 9

A party delegating his duty to a third party is known as a delegator.

Accepted Answer

A) True 
 B)False

Question 10

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Accepted Answer

A)  Brad's death has no effect on the assignment. 
B)  the assignment is terminated upon Brad's death. 
C)  the signing of the statement makes the assignment irrevocable. 
D)  the assignment is invalid, because it is gratuitous. 
A)  Brad's death has no effect on the assignment. 
B)  the assignment is terminated upon Brad's death. 
C)  the signing of the statement makes the assignment irrevocable. 
D)  the assignment is invalid, because it is gratuitous.

Question 11

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Accepted Answer

A)  a donee beneficiary. 
B)  a transferee. 
C)  a delegatee. 
D)  an assignee. 
A)  a donee beneficiary. 
B)  a transferee. 
C)  a delegatee. 
D)  an assignee.

Question 12

Under the Restatement, if there are successive assignments of the same right:

Accepted Answer

A)  the first assignee to notify the obligor prevails. 
B)  the latest assignee is usually entitled to the assigned right. 
C)  a prior assignee is entitled to the assigned right to the exclusion of a subsequent assignee in most circumstances. 
D)  a subsequent assignee is entitled to the assigned right unless a prior assignee gave value and obtains either a judgment against the obligor or a new contract with the obligor. 
A)  the first assignee to notify the obligor prevails. 
B)  the latest assignee is usually entitled to the assigned right. 
C)  a prior assignee is entitled to the assigned right to the exclusion of a subsequent assignee in most circumstances. 
D)  a subsequent assignee is entitled to the assigned right unless a prior assignee gave value and obtains either a judgment against the obligor or a new contract with the obligor.

Question 13

The UCC prohibits assignments of $5,000 or more.

Accepted Answer

A) True 
 B)False

Question 14

Mike transfers to Dean his right to receive a payment of $850 due to him from Opal. Dean is the assignee.

Accepted Answer

A) True 
 B)False

Question 15

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Accepted Answer

A) True 
 B)False

Question 16

Richard owes a duty to Carla and Richard delegates the duty to Antonella. Antonella :

Accepted Answer

A)  is not obligated to either Richard or Carla to perform the duty unless Antonella agrees to do so. 
B)  becomes liable for nonperformance to both Richard and Carla only if she promises both Richard and Carla that she will perform Richard's duty. 
C)  cannot create contractual rights in Carla . 
D)  is liable only to Richard because that is who she has a contract with. 
A)  is not obligated to either Richard or Carla to perform the duty unless Antonella agrees to do so. 
B)  becomes liable for nonperformance to both Richard and Carla only if she promises both Richard and Carla that she will perform Richard's duty. 
C)  cannot create contractual rights in Carla . 
D)  is liable only to Richard because that is who she has a contract with.

Question 17

Which of the following is NOT true concerning the requirements for an effective assignment?

Accepted Answer

A)  The assignment must be voluntary. 
B)  Consideration is required. 
C)  There must be an intention to make the assignee the owner of the right. 
D)  The assignment may be either written or oral. 
A)  The assignment must be voluntary. 
B)  Consideration is required. 
C)  There must be an intention to make the assignee the owner of the right. 
D)  The assignment may be either written or oral.

Question 18

Unless otherwise provided by statute, an assignment may be made orally.

Accepted Answer

A) True 
 B)False

Question 19

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 16: Third Parties to Contracts

All but which of the following is true about a delegation of duties?

The obligor need not receive notice for an assignment to be valid.

Which of the following involves a creditor beneficiary relationship?

Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Under Article 2 of the UCC, a right to damages for breach of the whole contract can be assigned despite a contractual provision to the contrary.

Name four types of contract rights that are non-assignable.

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

A party delegating his duty to a third party is known as a delegator.

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Under the Restatement, if there are successive assignments of the same right:

The UCC prohibits assignments of $5,000 or more.

Mike transfers to Dean his right to receive a payment of $850 due to him from Opal. Dean is the assignee.

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Richard owes a duty to Carla and Richard delegates the duty to Antonella. Antonella :

Which of the following is NOT true concerning the requirements for an effective assignment?

Unless otherwise provided by statute, an assignment may be made orally.

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

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.

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

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