Question 1

Which of the following statements is true of assignors?

Accepted Answer

A)  An assignor who is paid for making an assignment is not liable to assignees for implied guarantees. 
B)  An assignor who wrongfully assigns the same claim more than once is not liable to an assignee as the assignee is later held to have acquired rights against the promisor. 
C)  An assignor does not impliedly warrant the solvency of a promisor. 
D)  An assignor who accepts performance from the promisor after the assignment does not hold any benefits he or she receives as trustee for his or her assignee. 
A)  An assignor who is paid for making an assignment is not liable to assignees for implied guarantees. 
B)  An assignor who wrongfully assigns the same claim more than once is not liable to an assignee as the assignee is later held to have acquired rights against the promisor. 
C)  An assignor does not impliedly warrant the solvency of a promisor. 
D)  An assignor who accepts performance from the promisor after the assignment does not hold any benefits he or she receives as trustee for his or her assignee. C

Question 2

The transfer of duties under a contract is called an assignment.

Accepted Answer

A) True 
 B)False  False

Question 3

When rights under a contract are transferred, this is called a delegation.

Accepted Answer

A) True 
 B)False  False

Question 4

When a promisor appoints another person to perform his duties under a contract, _____.

Accepted Answer

A)  it is called an assignment 
B)  it is called a delegation 
C)  it creates an incidental beneficiary 
D)  it creates a donee beneficiary 
A)  it is called an assignment 
B)  it is called a delegation 
C)  it creates an incidental beneficiary 
D)  it creates a donee beneficiary

Question 5

Unless an assignment agreement clearly indicates a contrary intent, courts today tend to interpret assignments as including a delegation of the assignor's duties. A promise on the part of the assignee to perform these duties:

Accepted Answer

A)  is not implied. 
B)  is enforceable by either the promisor or the assignor. 
C)  depends on the policy followed by the public. 
D)  is not enforceable by the assignor. 
A)  is not implied. 
B)  is enforceable by either the promisor or the assignor. 
C)  depends on the policy followed by the public. 
D)  is not enforceable by the assignor.

Question 6

Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?

Accepted Answer

A)  To protect the goodwill of the business 
B)  To protect the employees from losing their jobs 
C)  To protect the interest of the public 
D)  To protect wage earners from unwisely impoverishing themselves 
A)  To protect the goodwill of the business 
B)  To protect the employees from losing their jobs 
C)  To protect the interest of the public 
D)  To protect wage earners from unwisely impoverishing themselves

Question 7

A creditor beneficiary:

Accepted Answer

A)  has rights against both the promisee and the promisor. 
B)  is the promisor in a performance that satisfies a legal duty. 
C)  acquires no rights under a contract and therefore cannot sue for nonperformance. 
D)  is the promisee who owes a legal duty to a third party. 
A)  has rights against both the promisee and the promisor. 
B)  is the promisor in a performance that satisfies a legal duty. 
C)  acquires no rights under a contract and therefore cannot sue for nonperformance. 
D)  is the promisee who owes a legal duty to a third party.

Question 8

The person who makes an assignment is called the delegator.

Accepted Answer

A) True 
 B)False

Question 9

An incidental beneficiary can:

Accepted Answer

A)  enforce a contract. 
B)  acquire rights under a contract. 
C)  be a member of the general public. 
D)  sue for nonperformance. 
A)  enforce a contract. 
B)  acquire rights under a contract. 
C)  be a member of the general public. 
D)  sue for nonperformance.

Question 10

Which of the following is an implied guarantee when an assignor is paid for making an assignment?

Accepted Answer

A)  The promisor himself or herself does not have the capacity to contract. 
B)  The assignor has good title to the rights assigned. 
C)  The contract has been discharged two months prior to assignment. 
D)  Any oral statement representing the claim is genuine. 
A)  The promisor himself or herself does not have the capacity to contract. 
B)  The assignor has good title to the rights assigned. 
C)  The contract has been discharged two months prior to assignment. 
D)  Any oral statement representing the claim is genuine.

Question 11

Rocky was voted the most valuable player of his university's basketball team. Rocky:

Accepted Answer

A)  can delegate his duties to another player. 
B)  cannot delegate his duties due to public policy. 
C)  cannot delegate his duties since they involve his personal skill. 
D)  can assign his duties to another player. 
A)  can delegate his duties to another player. 
B)  cannot delegate his duties due to public policy. 
C)  cannot delegate his duties since they involve his personal skill. 
D)  can assign his duties to another player.

Question 12

Susan wanted to give a diamond pendant to Lucy, her daughter. Susan entered into a contract with Andrew, a dealer who specializes in diamond jewelry. Susan had promised to pay him if he delivered the pendant to Lucy. Andrew withdrew from the contract and Lucy wanted to sue him. Which of the following statements is true in this scenario?

Accepted Answer

A)  Lucy can sue Andrew as she is a creditor beneficiary of the contract. 
B)  Lucy can sue Andrew as she is a donee beneficiary of the contract. 
C)  Lucy cannot sue Andrew as she is an incidental beneficiary of the contract. 
D)  Lucy cannot sue Andrew as Susan's promise was gratuitous and therefore unenforceable. 
A)  Lucy can sue Andrew as she is a creditor beneficiary of the contract. 
B)  Lucy can sue Andrew as she is a donee beneficiary of the contract. 
C)  Lucy cannot sue Andrew as she is an incidental beneficiary of the contract. 
D)  Lucy cannot sue Andrew as Susan's promise was gratuitous and therefore unenforceable.

Question 13

The term delegation refers to the transfer of:

Accepted Answer

A)  personal rights. 
B)  duties. 
C)  property rights. 
D)  securities. 
A)  personal rights. 
B)  duties. 
C)  property rights. 
D)  securities.

Question 14

For an assigned claim to be valid, _____.

Accepted Answer

A)  the assignor need not have the capacity to contract 
B)  the contract must not be voidable for any other reason known to the assignor 
C)  the contract must have been discharged once prior to the assignment 
D)  the assignee must have a good title to the rights assigned 
A)  the assignor need not have the capacity to contract 
B)  the contract must not be voidable for any other reason known to the assignor 
C)  the contract must have been discharged once prior to the assignment 
D)  the assignee must have a good title to the rights assigned

Question 15

Which of the following statements is true of delegation of duties?

Accepted Answer

A)  A promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them. 
B)  If the duty to be performed could be performed fully by many different persons, it is delegable. 
C)  All duties are delegable, like assignments. 
D)  If performance depends on the personal skill, it can be delegated. 
A)  A promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them. 
B)  If the duty to be performed could be performed fully by many different persons, it is delegable. 
C)  All duties are delegable, like assignments. 
D)  If performance depends on the personal skill, it can be delegated.

Question 16

Contracts involving personal rights are generally assignable.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of employment contracts?

Accepted Answer

A)  They are generally assignable. 
B)  They are contrary to public policies. 
C)  They involve personal rights. 
D)  They involve the transfer of duties. 
A)  They are generally assignable. 
B)  They are contrary to public policies. 
C)  They involve personal rights. 
D)  They involve the transfer of duties.

Question 18

Who is a donee beneficiary? Does he or she have the right to enforce a contract?

Accepted Answer

A third person is a donee beneficiary if

Question 19

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees. These guarantees are imposed by law unless the assignment agreement clearly indicates to the contrary. What are these implied guarantees?

Accepted Answer

The implied guarantees are as follows:
"

Question 20

If the promisor's performance will satisfy a legal duty that the promisee owes a third party, the third party is a creditor beneficiary.

Accepted Answer

A) True 
 B)False

Exam 17: Third Parties Contract Rights

Which of the following statements is true of assignors?

The transfer of duties under a contract is called an assignment.

When rights under a contract are transferred, this is called a delegation.

When a promisor appoints another person to perform his duties under a contract, _____.

Unless an assignment agreement clearly indicates a contrary intent, courts today tend to interpret assignments as including a delegation of the assignor's duties. A promise on the part of the assignee to perform these duties:

Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?

A creditor beneficiary:

The person who makes an assignment is called the delegator.

An incidental beneficiary can:

Which of the following is an implied guarantee when an assignor is paid for making an assignment?

Rocky was voted the most valuable player of his university's basketball team. Rocky:

The term delegation refers to the transfer of:

For an assigned claim to be valid, _____.

Which of the following statements is true of delegation of duties?

Contracts involving personal rights are generally assignable.

Which of the following is true of employment contracts?

Who is a donee beneficiary? Does he or she have the right to enforce a contract?

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees. These guarantees are imposed by law unless the assignment agreement clearly indicates to the contrary. What are these implied guarantees?

If the promisor's performance will satisfy a legal duty that the promisee owes a third party, the third party is a creditor beneficiary.

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The Nature and Origins of Contracts

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Introduction to Security

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