Question 1

An assignment of rights in real estate often cannot be prohibited.

Accepted Answer

A) True 
 B)False  True

Question 2

A material breach occurs when performance is substantial,but not complete.

Accepted Answer

A) True 
 B)False  False

Question 3

A delegator is a party who transfers his or her obligation under a contract to another party.

Accepted Answer

A) True 
 B)False  True

Question 4

In an assignment,the party receiving the rights is known as the assignor.

Accepted Answer

A) True 
 B)False

Question 5

It is legally necessary to notify the obligor of any assignment of rights to a third party.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Regional Steel,Inc.,and Overland Transport Company enter into a con-tract. 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 8

A party is entitled to cancel a contract based on the other party's material breach.

Accepted Answer

A) True 
 B)False

Question 9

A condition that must be fulfilled before a party's performance can be required is a concurrent condition.

Accepted Answer

A) True 
 B)False

Question 10

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

Accepted Answer

A) damages. 
B) nothing more. 
C) repudiation. 
D) alteration. 
A) damages. 
B) nothing more. 
C) repudiation. 
D) alteration.

Question 11

Vested is the condition in which rights have taken effect and cannot be taken away.

Accepted Answer

A) True 
 B)False

Question 12

Robert enters into a contract with Claire.Claire agrees to paint Robert's living room for $500.Claire is the

Accepted Answer

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

Question 13

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $250 price on May 15.The delivery and installation of the sink and the payment of the price are ex-amples of

Accepted Answer

A) conditions precedent. 
B) concurrent conditions. 
C) conditions subsequent. 
D) implied conditions. 
A) conditions precedent. 
B) concurrent conditions. 
C) conditions subsequent. 
D) implied conditions.

Question 14

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer.Wilson has financial troubles and he and Shelby sign an accord,in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.Wilson's delivery of the bike and $4,000 to Shelby is

Accepted Answer

A) an accord. 
B) satisfaction. 
C) substantial performance. 
D) novation. 
A) an accord. 
B) satisfaction. 
C) substantial performance. 
D) novation.

Question 15

Tender is a timely offer or expression of willingness to pay a debt or perform an obligation.

Accepted Answer

A) True 
 B)False

Question 16

Jack contracts to provide lawn-mowing services to Lee.Jack can-not dele-gate this duty

Accepted Answer

A) because it is a personal service contract. 
B) without continuing to be liable. 
C) without Lee's consent. 
D) without providing lawn-mowing services to Kim. 
A) because it is a personal service contract. 
B) without continuing to be liable. 
C) without Lee's consent. 
D) without providing lawn-mowing services to Kim.

Question 17

Fact Pattern 12-1 
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 12-1.The value of Eatery's property will increase after Carol's store is remodeled.Eatery 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 18

Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat.Joanne agrees to do the portrait to Carol's satisfaction for $100.When Joanne finishes the portrait,Carol announces that she is not satisfied with the portrait because it does not look like her cat.Carol

Accepted Answer

A) must accept the portrait and pay Joanne $100. 
B) must accept the portrait and pay Joanne $50. 
C) must accept the portrait and pay Joanne $25. 
D) does not have to accept the portrait or pay Joanne any money. 
A) must accept the portrait and pay Joanne $100. 
B) must accept the portrait and pay Joanne $50. 
C) must accept the portrait and pay Joanne $25. 
D) does not have to accept the portrait or pay Joanne any money.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Jayson and MaryElise enter into a contract.Jayson agrees to mow MaryElise's yard every week for the summer.MaryElise is the

Accepted Answer

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

Exam 12: Third Party Rights and Discharge

An assignment of rights in real estate often cannot be prohibited.

A material breach occurs when performance is substantial,but not complete.

A delegator is a party who transfers his or her obligation under a contract to another party.

In an assignment,the party receiving the rights is known as the assignor.

It is legally necessary to notify the obligor of any assignment of rights to a third party.

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

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

A party is entitled to cancel a contract based on the other party's material breach.

A condition that must be fulfilled before a party's performance can be required is a concurrent condition.

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

Vested is the condition in which rights have taken effect and cannot be taken away.

Robert enters into a contract with Claire.Claire agrees to paint Robert's living room for $500.Claire is the

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $250 price on May 15.The delivery and installation of the sink and the payment of the price are ex-amples of

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer.Wilson has financial troubles and he and Shelby sign an accord,in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.Wilson's delivery of the bike and $4,000 to Shelby is

Tender is a timely offer or expression of willingness to pay a debt or perform an obligation.

Jack contracts to provide lawn-mowing services to Lee.Jack can-not dele-gate this duty

Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat.Joanne agrees to do the portrait to Carol's satisfaction for $100.When Joanne finishes the portrait,Carol announces that she is not satisfied with the portrait because it does not look like her cat.Carol

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

Jayson and MaryElise enter into a contract.Jayson agrees to mow MaryElise's yard every week for the summer.MaryElise is the

The Legal and Constitutional Environment of Business

Courts and Alternative Dispute Resolution

Ethics and Business Decision Making

Tort Law

Intellectual Property

Internet Law,social Media,and Privacy

Criminal Law and Cyber Crime

Nature and Classification

Agreement in Traditional and E-Contracts

Consideration, capacity, and Legality

Defenses to Contract Enforceability

Breach and Remedies

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Checks and Banking in the Digital Age

Secured Transactions

Creditors Rights and Bankruptcy

Agency Relationships

Employment Law

Sole Proprietorships, partnerships, and Limited Liability Companies

Corporate Formation, financing, and Termination

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, and Corporate Governance

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants and Other Professionals

International Law in a Global Economy

Filters