Question 1

The person who makes an assignment is the assignee.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

A duty may not be delegated if there is an express provision in a contract against delegation.

Accepted Answer

A) True 
 B)False  True

Question 4

Assignment of rights may be a voluntary or involuntary transfer to a third party of the rights arising from a contract.

Accepted Answer

A) True 
 B)False

Question 5

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

Accepted Answer

A) True 
 B)False

Question 6

Article 9 of the UCC makes ineffective any term in a contract prohibiting the assignment of any right to payment for goods sold.

Accepted Answer

A) True 
 B)False

Question 7

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

Accepted Answer

A) True 
 B)False

Question 8

A transfer to a third party of a contractual obligation is known as a(n):

Accepted Answer

A) assignment of rights. 
B) delegation of duties. 
C) revocability of assignment. 
D) partial assignment. 
A) assignment of rights. 
B) delegation of duties. 
C) revocability of assignment. 
D) partial assignment.

Question 9

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following involves an invalid assignment that a court would not enforce?

Accepted Answer

A) An assignment of a savings account accompanied by the delivery of the passbook. 
B) An assignment lacking consideration. 
C) An assignment of an automobile liability insurance policy accompanied by the delivery of the policy. 
D) An assignment in writing signed by the assignor and delivered to the assignee. 
A) An assignment of a savings account accompanied by the delivery of the passbook. 
B) An assignment lacking consideration. 
C) An assignment of an automobile liability insurance policy accompanied by the delivery of the policy. 
D) An assignment in writing signed by the assignor and delivered to the assignee.

Question 11

Rights under an option contract are assignable.

Accepted Answer

A) True 
 B)False

Question 12

When the rights under a contract are highly personal, they are not assignable.

Accepted Answer

A) True 
 B)False

Question 13

The party to whom a contractual duty of performance is owed is known as the:

Accepted Answer

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

Question 14

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 15

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend.The band cannot assign its rights and delegate its duties under this contract.

Accepted Answer

A) True 
 B)False

Question 16

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.

Accepted Answer

A) True 
 B)False

Question 17

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The Code prohibits waiver of defense clauses against assignees in contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 20

UCC Article 9 requires certain assignments to be in writing.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

The person who makes an assignment is the assignee.

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

A duty may not be delegated if there is an express provision in a contract against delegation.

Assignment of rights may be a voluntary or involuntary transfer to a third party of the rights arising from a contract.

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

Article 9 of the UCC makes ineffective any term in a contract prohibiting the assignment of any right to payment for goods sold.

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

A transfer to a third party of a contractual obligation is known as a(n):

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Which of the following involves an invalid assignment that a court would not enforce?

Rights under an option contract are assignable.

When the rights under a contract are highly personal, they are not assignable.

The party to whom a contractual duty of performance is owed is known as the:

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:

The student government of State University has a contract with a famous rock band to perform at the university on homecoming weekend.The band cannot assign its rights and delegate its duties under this contract.

Donee beneficiaries and incidental beneficiaries are called intended beneficiaries.

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

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

The Code prohibits waiver of defense clauses against assignees in contracts for the sale of goods.

UCC Article 9 requires certain assignments to be in writing.

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

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

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