Exam 16: Third Parties to Contracts

Darrell owns a parcel of land that is encumbered by a mortgage held by the First National Bank.Darrell agrees to sell the land to Paul for $50,000.Darrell and Paul together go to the First National Bank to discuss the sale and purchase with the banker.Darrell, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Darrell will be discharged from all further liability on the mortgage.In this case:

Which one of the following assignments would probably be prohibited by a court?

The Coastal Opera Company has a contract with a famous tenor to perform in its production of La Boheme .If the tenor chooses, he may delegate his duties under the contract to an equally well-known tenor.

Which of the following involves a creditor beneficiary relationship?

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

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend.The band cannot assign its rights and delegate its duties under this contract.

Contract rights are generally assignable.

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee.

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

Assignments of future wages are subject to statutes that sometimes prohibit them altogether.

Scott voluntarily transfers to Carlos his right to receive a payment of $425 due to him from Opal.Carlos  is the assignee.

An incidental beneficiary has no right to enforce a contract.

When contract terms prohibiting the assignment of rights exist, most courts will:

Which of the following duties would not be delegable?

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

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

Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Professor Doright's mother is a(n):

Which of the following involves an invalid assignment that a court would not enforce?

Courts will enforce contracts for the benefit of all but which of the following?

A person who owes a duty under a contract is an obligee.