Question 1

Which of the following rights is generally assignable in the United States?

Accepted Answer

A) personal service contract 
B) a future right 
C) legal action 
D) recovery of debt 
A) personal service contract 
B) a future right 
C) legal action 
D) recovery of debt

Question 2

The English rule provides that the final assignment in time prevails,regardless of notice.

Accepted Answer

A) True 
 B)False

Question 3

A substituted contract substitutes a new party for one of the original contracting parties.

Accepted Answer

A) True 
 B)False

Question 4

A creditor beneficiary refers to an original creditor who becomes a beneficiary under the debtor's new contract with another party.

Accepted Answer

A) True 
 B)False

Question 5

The ________ is an objective test that applies to commercial contracts and contracts involving mechanical fitness.

Accepted Answer

A) Reasonable person test 
B) Personal satisfaction test 
C) Express condition test 
D) Cognitive inventory test 
A) Reasonable person test 
B) Personal satisfaction test 
C) Express condition test 
D) Cognitive inventory test

Question 6

Condition subsequent exists when the parties to a contract must render performance simultaneously.

Accepted Answer

A) True 
 B)False

Question 7

A(n)________ refers to a contracting party who directs that the benefit be conferred on another person.

Accepted Answer

A) assignee 
B) promisor 
C) promisee 
D) donee beneficiary 
A) assignee 
B) promisor 
C) promisee 
D) donee beneficiary

Question 8

Which of the following is true of covenants and conditions?

Accepted Answer

A) A covenant is a conditional promise to perform. 
B) A conditional promise becomes a covenant if the condition is met. 
C) A contract cannot contain conditions to excuse performance. 
D) A party cannot sue over breach of a covenant by the other party. 
A) A covenant is a conditional promise to perform. 
B) A conditional promise becomes a covenant if the condition is met. 
C) A contract cannot contain conditions to excuse performance. 
D) A party cannot sue over breach of a covenant by the other party.

Question 9

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 10

Harry's grandmother leaves him a house and a Rolls Royce in her will.What rights does Harry have,in the context of his new inheritance?

Accepted Answer

Harry is an intended beneficiary,a third

Question 11

An incidental beneficiary has no rights to enforce or sue under other people's contracts.

Accepted Answer

A) True 
 B)False

Question 12

In the United States,sales contracts and contracts for the payment of money are not assignable.

Accepted Answer

A) True 
 B)False

Question 13

In a case of assumption of duties,the delegatee is not liable for nonperformance.

Accepted Answer

A) True 
 B)False

Question 14

Explain assignment of rights.

Accepted Answer

The transfer of contractual rights is ca

Question 15

A statute of limitations establishes the time period during which a lawsuit must be brought.

Accepted Answer

A) True 
 B)False

Question 16

A famous actor signs a contract with a movie studio where she agrees to star in a comedy.Which of the following is true of assignment of such a contract?

Accepted Answer

A) The movie studio can assign the contract to another movie studio. 
B) The movie studio is at liberty to include the actor in a different movie. 
C) If the actor is injured, she can assign the contract to another popular actor. 
D) Both the actor and the studio can agree that their contract can be assigned. 
A) The movie studio can assign the contract to another movie studio. 
B) The movie studio is at liberty to include the actor in a different movie. 
C) If the actor is injured, she can assign the contract to another popular actor. 
D) Both the actor and the studio can agree that their contract can be assigned.

Question 17

The right to sue another party for a violation of personal rights can be assigned.

Accepted Answer

A) True 
 B)False

Question 18

________ is a clause in a contract in which the parties specify certain events that will excuse nonperformance.

Accepted Answer

A) Approval clause 
B) Express condition 
C) Force majeure 
D) Implied-in-fact condition 
A) Approval clause 
B) Express condition 
C) Force majeure 
D) Implied-in-fact condition

Question 19

Howard is injured by Penny in a car accident,caused due to Penny's negligence.Which of the following statements holds true for Howard's right to assign?

Accepted Answer

A) Howard cannot assign the recovery of punitive damages from Penny. 
B) Howard can only assign the recovery of his medical expenses from Penny. 
C) Howard's right to sue Penny cannot be assigned. 
D) Howard can only assign his right to take the case to the appellate court. 
A) Howard cannot assign the recovery of punitive damages from Penny. 
B) Howard can only assign the recovery of his medical expenses from Penny. 
C) Howard's right to sue Penny cannot be assigned. 
D) Howard can only assign his right to take the case to the appellate court.

Question 20

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract,the delegation is called a(n)________.

Accepted Answer

A) condition precedent 
B) declaration of duties 
C) express condition 
D) discharge 
A) condition precedent 
B) declaration of duties 
C) express condition 
D) discharge

Exam 15: Third-Party Rights and Discharge

Which of the following rights is generally assignable in the United States?

The English rule provides that the final assignment in time prevails,regardless of notice.

A substituted contract substitutes a new party for one of the original contracting parties.

A creditor beneficiary refers to an original creditor who becomes a beneficiary under the debtor's new contract with another party.

The ________ is an objective test that applies to commercial contracts and contracts involving mechanical fitness.

Condition subsequent exists when the parties to a contract must render performance simultaneously.

A(n)________ refers to a contracting party who directs that the benefit be conferred on another person.

Which of the following is true of covenants and conditions?

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called an incidental beneficiary.

Harry's grandmother leaves him a house and a Rolls Royce in her will.What rights does Harry have,in the context of his new inheritance?

An incidental beneficiary has no rights to enforce or sue under other people's contracts.

In the United States,sales contracts and contracts for the payment of money are not assignable.

In a case of assumption of duties,the delegatee is not liable for nonperformance.

Explain assignment of rights.

A statute of limitations establishes the time period during which a lawsuit must be brought.

A famous actor signs a contract with a movie studio where she agrees to star in a comedy.Which of the following is true of assignment of such a contract?

The right to sue another party for a violation of personal rights can be assigned.

________ is a clause in a contract in which the parties specify certain events that will excuse nonperformance.

Howard is injured by Penny in a car accident,caused due to Penny's negligence.Which of the following statements holds true for Howard's right to assign?

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract,the delegation is called a(n)________.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

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