Question 1

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan:

Accepted Answer

A)  will be unaffected by Sean's action. 
B)  may recover damages from Sean for breach of an implied warranty. 
C)  may recover damages from Tanner for breach of an implied warranty. 
D)  has lost her right and has no remedy. 
A)  will be unaffected by Sean's action. 
B)  may recover damages from Sean for breach of an implied warranty. 
C)  may recover damages from Tanner for breach of an implied warranty. 
D)  has lost her right and has no remedy. B

Question 2

Contract rights are generally assignable.

Accepted Answer

A) True 
 B)False  True

Question 3

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise. 
b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

Accepted Answer

a. In an assignment and a delegation, the rights of the third party arise sometime after the original contract has been entered. In a third-party beneficiary contract, the rights of the third party arise or are contemplated by the contracting parties at the time the original contract is made. 
b. An assignor is the person making the assignment. The assignee is the person to whom the assignment is made. A delegator is a person making a delegation. A delegatee is the person to whom the delegation is made. An intended beneficiary is a third party intended by the two contracting parties to receive a benefit from their contract. An incidental beneficiary is a third party whom the parties to a contract have no intention of benefiting by their contract but who nevertheless would derive some benefit by the parties' performance of the contract. A creditor beneficiary is a third person intended to receive a benefit from an agreement in order to satisfy a legal duty owed to him.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:

Accepted Answer

A)  is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so. 
B)  becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty. 
C)  cannot create contractual rights in Grant. 
D)  All of these. 
A)  is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so. 
B)  becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty. 
C)  cannot create contractual rights in Grant. 
D)  All of these.

Question 11

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

Accepted Answer

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

Question 12

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 13

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 14

After an assignment, only the assignee has a right to the obligor's performance.

Accepted Answer

A) True 
 B)False

Question 15

List the implied warranties imposed by law on an assignor who has received value for the assignment.

Accepted Answer

The following are the implied warranties

Question 16

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

Accepted Answer

Non-assignable contract rights include t

Question 17

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:

Accepted Answer

A)  an implied beneficiary. 
B)  a partial beneficiary. 
C)  a donee beneficiary. 
D)  an incidental beneficiary. 
A)  an implied beneficiary. 
B)  a partial beneficiary. 
C)  a donee beneficiary. 
D)  an incidental beneficiary.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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):

Accepted Answer

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

Exam 16: Third Parties to Contracts

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan:

Contract rights are generally assignable.

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise. b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

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

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.

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.

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:

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

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

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

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

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.

After an assignment, only the assignee has a right to the obligor's performance.

List the implied warranties imposed by law on an assignor who has received value for the assignment.

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

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:

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

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

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):

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