Question 1

A right to receive damages on a breach of a contract for a sale of goods cannot be assigned.

Accepted Answer

A) True 
 B)False

Question 2

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Rural Development Corporation (RDC)and Smike enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Smike.Smike 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 prohibitee. 
A) a delegatee. 
B) an assignee. 
C) an obligee. 
D) a prohibitee.

Question 6

Super Toolmakers,Inc. ,contracts to sell its business to True Hardware Corporation.Before either party has performed,rescission of this contract requires

Accepted Answer

A) a mutual agreement to rescind. 
B) consideration. 
C) performance by all of the parties. 
D) an accord and satisfaction. 
A) a mutual agreement to rescind. 
B) consideration. 
C) performance by all of the parties. 
D) an accord and satisfaction.

Question 7

Contracts that are executory on both sides can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 8

Any breach of contract discharges the breaching party.

Accepted Answer

A) True 
 B)False

Question 9

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been

Accepted Answer

A) absolute. 
B) complete. 
C) conditional. 
D) substantial. 
A) absolute. 
B) complete. 
C) conditional. 
D) substantial.

Question 10

Tom and Sydney enter into a contract for the sale of Tom's house for which Sydney agrees to pay $350,000.Sydney wants to transfer her right to the ownership of the house to Rena,her niece.This transfer generally

Accepted Answer

A) cannot be prohibited. 
B) cannot be allowed. 
C) can be prevented. 
D) can be circumvented. 
A) cannot be prohibited. 
B) cannot be allowed. 
C) can be prevented. 
D) can be circumvented.

Question 11

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

Accepted Answer

A) True 
 B)False

Question 12

Performance that provides a party with most of the benefits of a contract,in spite of a deviation from the terms,is complete performance.

Accepted Answer

A) True 
 B)False

Question 13

Fact Pattern 11-3 
Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples.

-Refer to Fact Pattern 11-3.When bad weather destroys Garden Orchard's apple crop,Haruko's obligation to deliver apples to Fresh Produce is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended. 
A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 14

A delegation relieves the party making it of the obligation to perform.

Accepted Answer

A) True 
 B)False

Question 15

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Accepted Answer

A) True 
 B)False

Question 16

A transfer of contract rights to a third party is a delegation.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Ellen's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,no wine is delivered that day,and no one from Grapes & Vines tells Ellen.On the morning of May 2,Ellen buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Ellen's residence.She refuses tender.Grapes & Vines sues her for breach of contract.How is the court most likely to rule?

Accepted Answer

In most courts,the decision will rest on

Question 19

Any third party beneficiary to a contract who is not an intended beneficiary is incidental.

Accepted Answer

A) True 
 B)False

Question 20

The most common way to discharge a contract is by breach.

Accepted Answer

A) True 
 B)False

Exam 11: Third Party Rights and Discharge

A right to receive damages on a breach of a contract for a sale of goods cannot be assigned.

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

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

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

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

Super Toolmakers,Inc. ,contracts to sell its business to True Hardware Corporation.Before either party has performed,rescission of this contract requires

Contracts that are executory on both sides can be rescinded by agreement.

Any breach of contract discharges the breaching party.

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been

Tom and Sydney enter into a contract for the sale of Tom's house for which Sydney agrees to pay $350,000.Sydney wants to transfer her right to the ownership of the house to Rena,her niece.This transfer generally

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

Performance that provides a party with most of the benefits of a contract,in spite of a deviation from the terms,is complete performance.

Fact Pattern 11-3 Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples. -Refer to Fact Pattern 11-3.When bad weather destroys Garden Orchard's apple crop,Haruko's obligation to deliver apples to Fresh Produce is

A delegation relieves the party making it of the obligation to perform.

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

A transfer of contract rights to a third party is a delegation.

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

Any third party beneficiary to a contract who is not an intended beneficiary is incidental.

The most common way to discharge a contract is by breach.

The Legal and Constitutional Environment of Business

Traditional and Online Dispute Resolution

Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

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 Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiability,transferability,and Liability

Checks and Banking in the Digital Age

Security Interests in Personal Property

Creditors Rights and Bankruptcy

Mortgages Foreclosures After the Recession

Agency Relationships

Management Perspective: Independent-Contractor Negligence

Employment, immigration, and Labor Law

Sole Proprietorships, partnerships, Limited Liability Co

Corporate Formation, financing, and Termination

Corporate Directors, officers, Shareholders

Investor Protection, insider Trading, Corp Gov

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants Other Professionals

International Law in a Global Economy

Adapting the Law to the Online Environment: The Supreme Court Upholds a Law That Prohibits Pandering Virtual Child Pornography

Adapting the Law to the Online Environment: Should the Law Continue to Allow Business Process Patents

Management Perspective: E-Mailed Credit-Card Receipts

Case Study With Dissenting Opinion: Prestridge V Bank of Jena

Adapting the Law to the Online Environment: The Thorny Issue of Taxing Internet Sales

Adapting the Law to the Online Environment: The Debt That Never Goes Awayits Discharged in Bankruptcy but Still on the Debtors Credit Report

Adapting the Law to the Online Environment: Economic Recession Fuels the Amazon Tax Debate

Case Study With Dissenting Opinion: Kovarik V Kovarik

Unit Case Study With Dissenting Opinion: Dole Food Co V Patrickson

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