Exam 7: Third-Party Rights and Discharge

If a third-party beneficiary tries to enforce a contract,the promisor may use any defense against the third party that could have been used against the original promisee.

Which of the following is true about personal satisfaction clauses in contracts?

A unilateral rescission is effective in terminating a contract if done in good faith.

A donee beneficiary is someone who obtains rights under a contract without giving valuable consideration for those rights.

The reasonable person test is a subjective test that is used to judge contracts involving the mechanical fitness and most commercial contract.

Rebecca owes Ian $5,000.Ian needs money in a hurry so he assigns his right to collect from Rebecca to Janet for $4,500.Several days later,Ian assigns his right to collect from Rebecca to Kristin for another $4,500.Ian then leaves town.Kristin is the first to notify Rebecca of the assignment.In the majority of states,which of the following best describes this situation?

Jerry Lee was a professional singer.He entered into a contract to sing at a concert sponsored by ABC Co.He also entered into a contract to sell his house to Mary.Before either contract could be performed,Jerry dies.Both ABC and Mary sue for breach of contract.What results?

An unconditional promise to perform is known as a(n):

Roger contracted with Lori to produce a sculpture of her.The sculpture was to be made to Lori's satisfaction.Upon completion of the sculpture,which of the following is true?

Is the doctrine of commercial impracticability a good doctrine? Or,should the parties to a contract spell out in advance the exact circumstances when performance is excused? Isn't everyone who enters into a contract taking certain chances?

The party who is owed a right under the contract is called the assignor.

Joan owes Richard money.Richard assigns his rights of collection to Steve.In this situation:

Which of the following duties cannot be delegated?

Seller 1 contracts with Buyer to deliver 400 widgets.Seller 1 could fulfill this contract,but it assigns the benefits and delegates the duties of this contract to Seller,who accepts.If Seller 2 delivers the widgets that were contracted for,Buyer must accept and pay for them.

A contract cannot be based on the satisfaction of a third party,such as an engineer or architect.

Someone who owes a duty under a contract is an obligor.

A clause that prohibits the assignment of rights under a contract is called a proassignment clause.

Under a mutual rescission,the parties to a contract:

Sam and Sandy have an agreement whereby Sam will build a house on Sandy's beachfront lot.Before construction begins,Sandy changes her mind and decides she would rather build an addition onto her home in Baltimore.She discusses this with Sam,and they agree that he would build the addition to her home and not build the beach house.In this case,Sandy and Sam have:

Regarding the assignment of contract rights: