Question 1

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo as the designated beneficiary.Flo's rights under the contract will vest

Accepted Answer

A) automatically. 
B) if she demonstrates her consent to the promise at Dale's request. 
C) if Everbest attempts to modify the terms of the contract. 
D) never. 
A) automatically. 
B) if she demonstrates her consent to the promise at Dale's request. 
C) if Everbest attempts to modify the terms of the contract. 
D) never.

Question 2

Consumers Credit Company is a creditor beneficiary in a deal that involves Devon and Elena.Consumers Credit,like most creditor beneficiaries,is

Accepted Answer

A) a donee beneficiary. 
B) an incidental beneficiary. 
C) an intended beneficiary. 
D) one of the original contracting parties. 
A) a donee beneficiary. 
B) an incidental beneficiary. 
C) an intended beneficiary. 
D) one of the original contracting parties.

Question 3

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez.In most states,this transfer

Accepted Answer

A) is prohibited. 
B) may be oral or written. 
C) must be implied. 
D) must be in writing. 
A) is prohibited. 
B) may be oral or written. 
C) must be implied. 
D) must be in writing.

Question 4

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

Accepted Answer

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

Question 5

Nick contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Nick and Phoenix the right to modify its terms.Rural Cooperative's right to payment is

Accepted Answer

A) not affected by the reservation. 
B) subject to any change that Nick and Phoenix make. 
C) limited only if Rural Cooperative agrees to any changes. 
D) terminated by the reservation. 
A) not affected by the reservation. 
B) subject to any change that Nick and Phoenix make. 
C) limited only if Rural Cooperative agrees to any changes. 
D) terminated by the reservation.

Question 6

Contract duties cannot be assigned but they can be delegated.

Accepted Answer

A) True 
 B)False

Question 7

A contract can prevent an assignment of a right to receive funds.

Accepted Answer

A) True 
 B)False

Question 8

Alienation is a transfer of the ownership of land.

Accepted Answer

A) True 
 B)False

Question 9

A donee beneficiary cannot sue a promisor directly for breach of contract.

Accepted Answer

A) True 
 B)False

Question 10

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders.When Faye's schedule conflicts,she asks Gudren to serve Faye's coffee and pastries at the meeting.This transfer of duties is

Accepted Answer

A) a delegation. 
B) an assignment. 
C) an alienation. 
D) prohibited. 
A) a delegation. 
B) an assignment. 
C) an alienation. 
D) prohibited.

Question 11

If a third party has the right to control the details of contract performance,the third party is an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 12

Evergreen Landscapers,Inc. ,owes Friendly Finance Company $5,000.Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.Under the contract,Suburban promises to pay Friendly Finance the amount that will be due Evergreen until Evergreen's debt to Friendly Finance is paid.Evergreen 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 13

Floyd and Gert enter into a contract by which Floyd promises to deliver fer?tilizer to Gert.Floyd subsequently transfers this duty to Hazel.Floyd is

Accepted Answer

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

Question 14

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links.Under an antidelegation clause,their contract can prohibit and prevent the transfer of

Accepted Answer

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

Question 15

Pam borrows $5,000 from Quality Auto Sales to buy a car.When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency.Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed.Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legiti?mately refuse to pay Rapid? Explain.

Accepted Answer

Quality can transfer the right to receiv

Question 16

Jordan and Isabel enter into a contract under which Jordan agrees to cater Isabel's wedding in exchange for $5,000.The contract can expressly prohibit and prevent the transfer of

Accepted Answer

A) Jordan's right to receive funds. 
B) Isabel's right to receive personal services. 
C) no rights under the contract. 
D) all rights under the contract. 
A) Jordan's right to receive funds. 
B) Isabel's right to receive personal services. 
C) no rights under the contract. 
D) all rights under the contract.

Question 17

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven.This contract may not be assigned if

Accepted Answer

A) the assignment will significantly change the risk of nonperformance. 
B) the assignment is expressly prohibited by the terms of the contract. 
C) the contract is uniquely personal in nature. 
D) any of the choices. 
A) the assignment will significantly change the risk of nonperformance. 
B) the assignment is expressly prohibited by the terms of the contract. 
C) the contract is uniquely personal in nature. 
D) any of the choices.

Question 18

Any beneficiary who is not deemed an intended beneficiary is considered incidental.

Accepted Answer

A) True 
 B)False

Question 19

An "as?signment of all rights" creates an assignment of rights but not a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 20

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

Accepted Answer

A) a delegation. 
B) an assignment. 
C) an alienation. 
D) prohibited. 
A) a delegation. 
B) an assignment. 
C) an alienation. 
D) prohibited.

Exam 16: A: Third Party Rights

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo as the designated beneficiary.Flo's rights under the contract will vest

Consumers Credit Company is a creditor beneficiary in a deal that involves Devon and Elena.Consumers Credit,like most creditor beneficiaries,is

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez.In most states,this transfer

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

Nick contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Nick and Phoenix the right to modify its terms.Rural Cooperative's right to payment is

Contract duties cannot be assigned but they can be delegated.

A contract can prevent an assignment of a right to receive funds.

Alienation is a transfer of the ownership of land.

A donee beneficiary cannot sue a promisor directly for breach of contract.

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders.When Faye's schedule conflicts,she asks Gudren to serve Faye's coffee and pastries at the meeting.This transfer of duties is

If a third party has the right to control the details of contract performance,the third party is an incidental beneficiary.

Floyd and Gert enter into a contract by which Floyd promises to deliver fer?tilizer to Gert.Floyd subsequently transfers this duty to Hazel.Floyd is

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links.Under an antidelegation clause,their contract can prohibit and prevent the transfer of

Jordan and Isabel enter into a contract under which Jordan agrees to cater Isabel's wedding in exchange for $5,000.The contract can expressly prohibit and prevent the transfer of

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven.This contract may not be assigned if

Any beneficiary who is not deemed an intended beneficiary is considered incidental.

An "as?signment of all rights" creates an assignment of rights but not a delegation of duties.

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge