Question 1

An insurance policy is an example of a right that can be assigned.

Accepted Answer

A) True 
 B)False

Question 2

Phillip assigns his rights under a contract with Maria to his college roommate,John.Neither Phillip nor John notifies Maria of the assignment.The assignment​

Accepted Answer

A)  ​will not be effective until notice is given to Maria. 
B)  ​will become effective after thirty days even if no notice is given to Maria. 
C)  ​is immediately effective. 
D)  ​can be circumvented. 
A)  ​will not be effective until notice is given to Maria. 
B)  ​will become effective after thirty days even if no notice is given to Maria. 
C)  ​is immediately effective. 
D)  ​can be circumvented.

Question 3

In most cases,a contract that prohibits its assignment cannot be assigned.

Accepted Answer

A) True 
 B)False

Question 4

An intended beneficiary can sue directly to enforce a promisor's promise.

Accepted Answer

A) True 
 B)False

Question 5

Mai is a third party beneficiary under a contract between Novia and Otis.Novia and Otis can modify or rescind their contract without Mai's consent​

Accepted Answer

A)  ​at any time. 
B)  ​at no time. 
C)  ​after Mai's rights have vested. 
D)  ​before Mai's rights have vested. 
A)  ​at any time. 
B)  ​at no time. 
C)  ​after Mai's rights have vested. 
D)  ​before Mai's rights have vested.

Question 6

Fact Pattern 16-1Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies.
-Refer to Fact Pattern 16-1.Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store.Delta is​

Accepted Answer

A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an incidental beneficiary. 
D)  ​an intended beneficiary. 
A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an incidental beneficiary. 
D)  ​an intended beneficiary.

Question 7

Business Loans,LLC,is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails.Like most creditor beneficiaries,Business Loans is​

Accepted Answer

A)  ​a donee beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​an intended beneficiary. 
D)  ​an original contracting party. 
A)  ​a donee beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​an intended beneficiary. 
D)  ​an original contracting party.

Question 8

No contract can prohibit delegation of the duties of the contract.

Accepted Answer

A) True 
 B)False

Question 9

Regional Steel,Inc.,and Overland Transport Company enter into a contract.Smooth Oil Corporation,which will indirectly benefit from the deal,is prevented from having rights under the contract by the principle of

Accepted Answer

A)  ​assignment. 
B)  ​delegation. 
C)  ​privity. 
D)  ​vesting. 
A)  ​assignment. 
B)  ​delegation. 
C)  ​privity. 
D)  ​vesting.

Question 10

If a contract requires that performance be rendered directly to a third party,the third party is an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 11

If a third party has the right to control the details of contract performance,the third party is an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 12

Pico,a famous chef,agrees to give ten culinary lessons to Rhoda in exchange for $1,200.Pico's attempt to transfer his contract duties to Sven,an unknown sous-chef,will probably be​

Accepted Answer

A)  ​permitted because contracts may be freely delegated. 
B)  ​permitted because the contract is concerned with cookery. 
C)  ​prohibited because contracts may not be freely delegated. 
D)  ​prohibited if Pico and Sven have different skill levels. 
A)  ​permitted because contracts may be freely delegated. 
B)  ​permitted because the contract is concerned with cookery. 
C)  ​prohibited because contracts may not be freely delegated. 
D)  ​prohibited if Pico and Sven have different skill levels.

Exam 16: Third Party Rights

An insurance policy is an example of a right that can be assigned.

Phillip assigns his rights under a contract with Maria to his college roommate,John.Neither Phillip nor John notifies Maria of the assignment.The assignment​

In most cases,a contract that prohibits its assignment cannot be assigned.

An intended beneficiary can sue directly to enforce a promisor's promise.

Mai is a third party beneficiary under a contract between Novia and Otis.Novia and Otis can modify or rescind their contract without Mai's consent​

Fact Pattern 16-1Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. -Refer to Fact Pattern 16-1.Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store.Delta is​

Business Loans,LLC,is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails.Like most creditor beneficiaries,Business Loans is​

No contract can prohibit delegation of the duties of the contract.

Regional Steel,Inc.,and Overland Transport Company enter into a contract.Smooth Oil Corporation,which will indirectly benefit from the deal,is prevented from having rights under the contract by the principle of

If a contract requires that performance be rendered directly to a third party,the third party is an intended beneficiary.

If a third party has the right to control the details of contract performance,the third party is an incidental beneficiary.

Pico,a famous chef,agrees to give ten culinary lessons to Rhoda in exchange for $1,200.Pico's attempt to transfer his contract duties to Sven,an unknown sous-chef,will probably be​

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Introduction to Contracts

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Introduction to Sales and Lease Contracts

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Phillip assigns his rights under a contract with Maria to his college roommate,John.Neither Phillip nor John notifies Maria of the assignment.The assignment

Mai is a third party beneficiary under a contract between Novia and Otis.Novia and Otis can modify or rescind their contract without Mai's consent

Fact Pattern 16-1Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. -Refer to Fact Pattern 16-1.Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store.Delta is

Business Loans,LLC,is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails.Like most creditor beneficiaries,Business Loans is

Pico,a famous chef,agrees to give ten culinary lessons to Rhoda in exchange for $1,200.Pico's attempt to transfer his contract duties to Sven,an unknown sous-chef,will probably be