Question 1

A factor is a person:

Accepted Answer

A)  not a party to a contract who is intended, as a gift, to benefit from its performance. 
B)  to whom an obligation is owed. 
C)  not a party to a contact who was intended to benefit from it and who may sue to enforce its terms. 
D)  not a party to a contract who benefits from its performance but was not intended to specifically. 
E)  who purchases the right to receive income from another. 
A)  not a party to a contract who is intended, as a gift, to benefit from its performance. 
B)  to whom an obligation is owed. 
C)  not a party to a contact who was intended to benefit from it and who may sue to enforce its terms. 
D)  not a party to a contract who benefits from its performance but was not intended to specifically. 
E)  who purchases the right to receive income from another. E

Question 2

A personal right can be defined as:

Accepted Answer

A)  surrender by a party of legal rights otherwise available to him or her. 
B)  the relationship of the immediate parties to a contract. 
C)  the duty of a particular person to perform or receive contract duties or benefits 
D)  a new contract substituting for an old one, or a new party to a contract replacing a former party. 
E)  a contract for household or domestic purposes, not commercial purposes. 
A)  surrender by a party of legal rights otherwise available to him or her. 
B)  the relationship of the immediate parties to a contract. 
C)  the duty of a particular person to perform or receive contract duties or benefits 
D)  a new contract substituting for an old one, or a new party to a contract replacing a former party. 
E)  a contract for household or domestic purposes, not commercial purposes. C

Question 3

When the promisee is not indebted to the third person but intends for him or her to have the benefit of the promisor's performance, the third person is a creditor beneficiary.

Accepted Answer

A) True 
 B)False  False

Question 4

A donee beneficiary has no rights.

Accepted Answer

A) True 
 B)False

Question 5

What is a waiver of defenses?

Accepted Answer

One of the cases when the "shoe rule" ma

Question 6

A delegation is the transfer to a third party of the duty to perform under a contract.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following must hold for an assignment to become effective?

Accepted Answer

A)  The assignor must promise to make the assignment some time in future. 
B)  The assignee must manifest his acceptance under most circumstances. 
C)  The contract itself must preclude assignment. 
D)  The assignor must purchase the right to receive income from another. 
E)  The obligor must become the delegatee of the assignment. 
A)  The assignor must promise to make the assignment some time in future. 
B)  The assignee must manifest his acceptance under most circumstances. 
C)  The contract itself must preclude assignment. 
D)  The assignor must purchase the right to receive income from another. 
E)  The obligor must become the delegatee of the assignment.

Question 8

Under which of the following cases are assignments NOT allowed?

Accepted Answer

A)  Change in duties of the obligor 
B)  Assignment of personal rights 
C)  Assignment accepted by statute or public policy 
D)  Contracts that assign rights 
E)  Contracts based on assignee's performance 
A)  Change in duties of the obligor 
B)  Assignment of personal rights 
C)  Assignment accepted by statute or public policy 
D)  Contracts that assign rights 
E)  Contracts based on assignee's performance

Question 9

Under the Uniform Commercial Code, any assignments of rights in excess of $1,000 must be in writing.

Accepted Answer

A) True 
 B)False

Question 10

Persons are said to lack privity when:

Accepted Answer

A)  the right or duty of a particular person to perform or receive contract duties or benefits cannot be assigned. 
B)  they cannot pay money to receive another's executory contractual benefits. 
C)  an assignee cannot take greater rights than his assignor had. 
D)  they are not party to a contact which they were intended to benefit from 
E)  they are not party to a contract and cannot enforce its terms. 
A)  the right or duty of a particular person to perform or receive contract duties or benefits cannot be assigned. 
B)  they cannot pay money to receive another's executory contractual benefits. 
C)  an assignee cannot take greater rights than his assignor had. 
D)  they are not party to a contact which they were intended to benefit from 
E)  they are not party to a contract and cannot enforce its terms.

Question 11

Who is a delegatee?

Accepted Answer

A)  An obligator who delegates a duty 
B)  The one who performs under a contract 
C)  The one who is witness to the assignment The one to whom the delegation is made 
D)  The one to whom the contract is transferred 
A)  An obligator who delegates a duty 
B)  The one who performs under a contract 
C)  The one who is witness to the assignment The one to whom the delegation is made 
D)  The one to whom the contract is transferred

Question 12

The beneficiary's rights are always limited by the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 13

A creditor beneficiary is _____.

Accepted Answer

A)  one to whom the promisor agrees to pay a debt of the promisee 
B)  one who has no rights 
C)  an intended beneficiary 
D)  the recipient of a gift promise 
E)  one who is not the intended beneficiary 
A)  one to whom the promisor agrees to pay a debt of the promisee 
B)  one who has no rights 
C)  an intended beneficiary 
D)  the recipient of a gift promise 
E)  one who is not the intended beneficiary

Question 14

The surrender by a party of legal rights otherwise available to him or her is:

Accepted Answer

A)  a delegator's duty. 
B)  a personal right. 
C)  privity. 
D)  waiver of defenses. 
E)  vesting of rights. 
A)  a delegator's duty. 
B)  a personal right. 
C)  privity. 
D)  waiver of defenses. 
E)  vesting of rights.

Question 15

What is an assignor's warranty?

Accepted Answer

A)  The right or duty of a particular person to perform or receive contract duties or benefits; cannot be assigned 
B)  A new contract substituting for an old one, or a new party to a contract replacing a former party 
C)  The relationship of the immediate parties to a contract, a "private" relationship, as between a retailer and a customer 
D)  The passing or delivering by one person to another of the duty to perform a contract 
E)  Promises, express or implied, made by an assignor to the assignee about the merits of the assignment 
A)  The right or duty of a particular person to perform or receive contract duties or benefits; cannot be assigned 
B)  A new contract substituting for an old one, or a new party to a contract replacing a former party 
C)  The relationship of the immediate parties to a contract, a "private" relationship, as between a retailer and a customer 
D)  The passing or delivering by one person to another of the duty to perform a contract 
E)  Promises, express or implied, made by an assignor to the assignee about the merits of the assignment

Question 16

An incidental beneficiary is:

Accepted Answer

A)  the intended beneficiary. 
B)  the donee beneficiary. 
C)  one who has no rights. 
D)  the creditor beneficiary 
E)  one who promises to pay the debt. 
A)  the intended beneficiary. 
B)  the donee beneficiary. 
C)  one who has no rights. 
D)  the creditor beneficiary 
E)  one who promises to pay the debt.

Question 17

Contract rights are always assignable.

Accepted Answer

A) True 
 B)False

Question 18

Personal services are delegable.

Accepted Answer

A) True 
 B)False

Question 19

A creditor beneficiary cannot sue to enforce the terms of a contract because he is not a party to the contract.

Accepted Answer

A) True 
 B)False

Question 20

Naomi sells her car to Jack, who assumes her mortgage. Naomi, in other words, has delegated the duty to pay the bank to Jack. This contract is called:

Accepted Answer

A)  a consumer transaction. 
B)  a privity. 
C)  vesting of rights. 
D)  a novation. 
E)  an assignor's warranties 
A)  a consumer transaction. 
B)  a privity. 
C)  vesting of rights. 
D)  a novation. 
E)  an assignor's warranties

Exam 14: Third-Party Rights

A factor is a person:

A personal right can be defined as:

When the promisee is not indebted to the third person but intends for him or her to have the benefit of the promisor's performance, the third person is a creditor beneficiary.

A donee beneficiary has no rights.

What is a waiver of defenses?

A delegation is the transfer to a third party of the duty to perform under a contract.

Which of the following must hold for an assignment to become effective?

Under which of the following cases are assignments NOT allowed?

Under the Uniform Commercial Code, any assignments of rights in excess of $1,000 must be in writing.

Persons are said to lack privity when:

Who is a delegatee?

The beneficiary's rights are always limited by the terms of the contract.

A creditor beneficiary is _____.

The surrender by a party of legal rights otherwise available to him or her is:

What is an assignor's warranty?

An incidental beneficiary is:

Contract rights are always assignable.

Personal services are delegable.

A creditor beneficiary cannot sue to enforce the terms of a contract because he is not a party to the contract.

Naomi sells her car to Jack, who assumes her mortgage. Naomi, in other words, has delegated the duty to pay the bank to Jack. This contract is called:

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Real Assent

Consideration

Legality

Form and Meaning

Discharge of Obligations

Remedies

Products Liability

Intellectual Property

Insurance

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Employment Law

Labor-Management Relations

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

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