Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

All rights can be assigned.

Accepted Answer

A) True 
 B)False  False

Question 3

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. B

Question 4

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Accepted Answer

A) a delegatee. 
B) an assignee. 
C) an obligee. 
D) a third party beneficiary. 
A) a delegatee. 
B) an assignee. 
C) an obligee. 
D) a third party beneficiary.

Question 5

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Accepted Answer

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

Question 6

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is

Accepted Answer

A) a delegator. 
B) an assignor. 
C) a payor. 
D) a third party beneficiary. 
A) a delegator. 
B) an assignor. 
C) a payor. 
D) a third party beneficiary.

Question 7

Fact Pattern 15-1 (Questions 29-31 apply)
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 15-1.Delta will realize a profit from the sale of prod?ucts 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 8

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 9

A special form is required to create a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 10

A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor.

Accepted Answer

A) True 
 B)False

Question 11

A-One Landscapers,Inc.,owes Friendly Finance Company $5,000. A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban's property. Un?der the contract,Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One's debt to Friendly Finance is paid. A-One performs as promised,but Suburban does not pay Friendly Finance. Can Friendly Finance succeed in a suit against Suburban? Why or why not?

Accepted Answer

Friendly Finance could succeed in a suit

Question 12

If a contract does not require that performance be rendered directly to a third party,the third party is an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 13

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim 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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Eli owes Martin $10,000.Martin assigns the claim to Jack.Jack does not notify Eli of the assignment.A week later,Martin assigns the same claim to Allen.Allen immediately notifies Eli of the assignment.Allen

Accepted Answer

A) has priority to payment in all states. 
B) has priority to payment in states that follow the English rule. 
C) does not have priority to payment in any state. 
D) has priority to payment in most states. 
A) has priority to payment in all states. 
B) has priority to payment in states that follow the English rule. 
C) does not have priority to payment in any state. 
D) has priority to payment in most states.

Question 16

Richly Retail Outlets,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the con?tract cannot be assigned because

Accepted Answer

A) Richly did not consent to the assignment. 
B) Richly did not receive adequate consideration for the assignment. 
C) the assignment will materially increase the risk of nonperformance. 
D) Town Builders was not an original party to the deal. 
A) Richly did not consent to the assignment. 
B) Richly did not receive adequate consideration for the assignment. 
C) the assignment will materially increase the risk of nonperformance. 
D) Town Builders was not an original party to the deal.

Question 17

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is

Accepted Answer

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

Question 18

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is

Accepted Answer

A) a delegatee. 
B) an assignee. 
C) an obligee. 
D) a third party beneficiary. 
A) a delegatee. 
B) an assignee. 
C) an obligee. 
D) a third party beneficiary.

Question 19

A life insurance contract involves an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 15: Third Party Rights

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

All rights can be assigned.

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

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

A special form is required to create a delegation of duties.

A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor.

If a contract does not require that performance be rendered directly to a third party,the third party is an incidental beneficiary.

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim is

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

Eli owes Martin $10,000.Martin assigns the claim to Jack.Jack does not notify Eli of the assignment.A week later,Martin assigns the same claim to Allen.Allen immediately notifies Eli of the assignment.Allen

Richly Retail Outlets,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the con?tract cannot be assigned because

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is

A life insurance contract involves an intended beneficiary.

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

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