Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

Accepted Answer

A)  a delegatee. 
B)  an assignee. 
C)  an obligee. 
D)  a delegator. 
A)  a delegatee. 
B)  an assignee. 
C)  an obligee. 
D)  a delegator.

Question 3

A life insurance contract involves an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 16-1 
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 16-1. 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 5

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 6

Bonita and Chad enter into a contract for Chad to plant trees on Bonita's property for which she agrees to pay $500. When Chad's schedule conflicts, he contacts Dirk, to whom he "assigns all rights under the contract." Chad is

Accepted Answer

A)  absolved of any liability under the contract. 
B)  in breach of the contract with Bonita. 
C)  liable to Bonita if Dirk does not perform. 
D)  liable to Dirk for inducing a prohibited contract. 
A)  absolved of any liability under the contract. 
B)  in breach of the contract with Bonita. 
C)  liable to Bonita if Dirk does not perform. 
D)  liable to Dirk for inducing a prohibited contract.

Question 7

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an antidelegation clause, the contract can prohibit and prevent the transfer of

Accepted Answer

A)  only duties that are personal in nature. 
B)  only duties that are impersonal in nature. 
C)  no duties under the contract. 
D)  all duties under the contract. 
A)  only duties that are personal in nature. 
B)  only duties that are impersonal in nature. 
C)  no duties under the contract. 
D)  all duties under the contract.

Question 8

Tristan promises to paint Katy's house in exchange for Lila's promise to plant trees on Tristan's property. This is

Accepted Answer

A)  a delegation. 
B)  an assignment. 
C)  a third party beneficiary contract. 
D)  none of the choices. 
A)  a delegation. 
B)  an assignment. 
C)  a third party beneficiary contract. 
D)  none of the choices.

Question 9

Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is

Accepted Answer

A)  not affected by the reservation. 
B)  subject to any change that Ozzie and Ray make. 
C)  limited only if Thalia agrees to any changes. 
D)  terminated by the reservation. 
A)  not affected by the reservation. 
B)  subject to any change that Ozzie and Ray make. 
C)  limited only if Thalia agrees to any changes. 
D)  terminated by the reservation.

Question 10

Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial "assigns all rights under the contract." This transfer is

Accepted Answer

A)  an assignment and a delegation. 
B)  an alienation and a negotiation. 
C)  an obligation and a cancelation. 
D)  prohibited. 
A)  an assignment and a delegation. 
B)  an alienation and a negotiation. 
C)  an obligation and a cancelation. 
D)  prohibited.

Question 11

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.

Question 12

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

Accepted Answer

A) True 
 B)False

Exam 16: Third Party Rights

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

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

A life insurance contract involves an intended beneficiary.

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

Bonita and Chad enter into a contract for Chad to plant trees on Bonita's property for which she agrees to pay $500. When Chad's schedule conflicts, he contacts Dirk, to whom he "assigns all rights under the contract." Chad is

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an antidelegation clause, the contract can prohibit and prevent the transfer of

Tristan promises to paint Katy's house in exchange for Lila's promise to plant trees on Tristan's property. This is

Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is

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

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

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