Question 1

Terms such as "sell," "convey," and "give" indicate the intent to transfer a contract right.

Accepted Answer

A) True 
 B)False

Question 2

When is nonperformance by a contractual party excusable?

Accepted Answer

Nonperformance is excused if a contract

Question 3

An obligee who transfers the right to receive performance is called the ________.

Accepted Answer

A) subsequent assignor 
B) obligor 
C) assignor 
D) assignee 
A) subsequent assignor 
B) obligor 
C) assignor 
D) assignee

Question 4

An obligee who transfers the right to receive performance is called an assignor.

Accepted Answer

A) True 
 B)False

Question 5

If a delegatee has not assumed the duties under a contract,the delegatee is not liable to the obligee for nonperformance.

Accepted Answer

A) True 
 B)False

Question 6

A person is permitted to assign a currently nonexistent right that he or she expects to have in the future.

Accepted Answer

A) True 
 B)False

Question 7

If the assignee fails to provide notice of assignment to the obligor and the obligor continues to render performance to the assignor,the assignee can sue the obligor.

Accepted Answer

A) True 
 B)False

Question 8

The party to whom the duty is owed is the delegatee.

Accepted Answer

A) True 
 B)False

Question 9

A(n)________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.

Accepted Answer

A) Condition precedent 
B) Condition subsequent 
C) Concurrent condition 
D) Implied condition 
A) Condition precedent 
B) Condition subsequent 
C) Concurrent condition 
D) Implied condition

Question 10

The party to whom a duty is owed is the ________.

Accepted Answer

A) delegator 
B) delegatee 
C) obligor 
D) obligee 
A) delegator 
B) delegatee 
C) obligor 
D) obligee

Question 11

The promisee is the contracting party who agrees to confer performance for the benefit of the third person.

Accepted Answer

A) True 
 B)False

Question 12

Approval clauses require that the assignee approve any assignment of a contract.

Accepted Answer

A) True 
 B)False

Question 13

What does the English rule for successive assignments provide?

Accepted Answer

A) The first assignment in time prevails, regardless of notice. 
B) The first assignment in time prevails, pending notice. 
C) The first assignee to give notice to the obligor prevails. 
D) The first assignee who receives a tangible token prevails. 
A) The first assignment in time prevails, regardless of notice. 
B) The first assignment in time prevails, pending notice. 
C) The first assignee to give notice to the obligor prevails. 
D) The first assignee who receives a tangible token prevails.

Question 14

A party who owes a duty of performance under a contract is called the ________.

Accepted Answer

A) obligor 
B) assignor 
C) assignee 
D) obligee 
A) obligor 
B) assignor 
C) assignee 
D) obligee

Question 15

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform?

Accepted Answer

A) condition precedent 
B) condition subsequent 
C) concurrent condition 
D) implied condition 
A) condition precedent 
B) condition subsequent 
C) concurrent condition 
D) implied condition

Question 16

What does the American Rule for successive assignments provide?

Accepted Answer

A) The last assignment in time prevails, regardless of notice. 
B) The first notified assignment prevails. 
C) The first assignment in time prevails, regardless of notice. 
D) Only notified assignments prevail. 
A) The last assignment in time prevails, regardless of notice. 
B) The first notified assignment prevails. 
C) The first assignment in time prevails, regardless of notice. 
D) Only notified assignments prevail.

Question 17

Mr.Jacob,who is terminally ill,writes a will transferring all his assets to his daughter Silvia,in the event of his death.The doctors say that Mr.Jacob will live for about six months.A day after the will is written,Silvia wishes to transfer her expected inheritance to her son,Jacob Jr.This assignment will be ________.

Accepted Answer

A) valid 
B) conditionally valid 
C) invalid 
D) re-assignable by Jacob Jr. 
A) valid 
B) conditionally valid 
C) invalid 
D) re-assignable by Jacob Jr.

Question 18

Privity of contract refers to the transfer of contractual rights by an obligee to another party.

Accepted Answer

A) True 
 B)False

Question 19

KnockKnock is a manufacturer of stainless steel locks that are well-known for their durability.The company contacts a new stainless steel supplier and enters into a supply contract.The contract states that KnockKnock would purchase only if the steel from the supplier was high-grade Type 102 stainless steel.This is an instance of a ________.

Accepted Answer

A) condition subsequent 
B) concurrent condition 
C) covenant 
D) condition precedent 
A) condition subsequent 
B) concurrent condition 
C) covenant 
D) condition precedent

Question 20

A covenant is an unconditional promise to perform.

Accepted Answer

A) True 
 B)False

Exam 15: Third-Party Rights and Discharge

Terms such as "sell," "convey," and "give" indicate the intent to transfer a contract right.

When is nonperformance by a contractual party excusable?

An obligee who transfers the right to receive performance is called the ________.

An obligee who transfers the right to receive performance is called an assignor.

If a delegatee has not assumed the duties under a contract,the delegatee is not liable to the obligee for nonperformance.

A person is permitted to assign a currently nonexistent right that he or she expects to have in the future.

If the assignee fails to provide notice of assignment to the obligor and the obligor continues to render performance to the assignor,the assignee can sue the obligor.

The party to whom the duty is owed is the delegatee.

A(n)________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.

The party to whom a duty is owed is the ________.

The promisee is the contracting party who agrees to confer performance for the benefit of the third person.

Approval clauses require that the assignee approve any assignment of a contract.

What does the English rule for successive assignments provide?

A party who owes a duty of performance under a contract is called the ________.

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform?

What does the American Rule for successive assignments provide?

Privity of contract refers to the transfer of contractual rights by an obligee to another party.

A covenant is an unconditional promise to perform.

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