Question 1

In a third-party beneficiary contract, the third party's rights arise at the time the contract is formed.

Accepted Answer

A) True 
 B)False

Question 2

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Consideration is required. 
B)  The assignment must be voluntary. 
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)  Consideration is required. 
B)  The assignment must be voluntary. 
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 4

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

Question 5

Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided.Carl assigns the contract to David, a developer.As a result of this assignment:

Accepted Answer

A)  Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. 
B)  Carl has no more rights or responsibilities with regard to the contract. 
C)  Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties. 
D)  Lyle can bring suit based upon detrimental reliance. 
A)  Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform. 
B)  Carl has no more rights or responsibilities with regard to the contract. 
C)  Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties. 
D)  Lyle can bring suit based upon detrimental reliance.

Question 6

The privilege to play tennis and socialize at the Capital City Country Club (CCCC) is obtained through application, references, resumes, and fees.Steven and Chanel want to assign the remaining 4 years of their 5-year membership to Charles and Prissy so that Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club.CCCC sues to enjoin Steven and Chanel from assigning their membership.CCCC will most probably:

Accepted Answer

A)  prevail because assigning the membership contract would violate public policy. 
B)  not prevail because all contract rights are assignable. 
C)  prevail because the parties intended the contract to be personal and non-assignable. 
D)  None of these. 
A)  prevail because assigning the membership contract would violate public policy. 
B)  not prevail because all contract rights are assignable. 
C)  prevail because the parties intended the contract to be personal and non-assignable. 
D)  None of these.

Exam 16: Third Parties to Contracts

In a third-party beneficiary contract, the third party's rights arise at the time the contract is formed.

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

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

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:

Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided.Carl assigns the contract to David, a developer.As a result of this assignment:

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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