Question 1

The "shoe rule" does not apply when _____

Accepted Answer

A)  there is a sale of a negotiable instrument to a holder in due course. 
B)  doing so would maintain the obligation of the obligor. 
C)  statute or public policy forbids the assignment. 
D)  the contract itself precludes assignment. 
E)  the assignor must make known his intention to transfer the rights to the third person. 
A)  there is a sale of a negotiable instrument to a holder in due course. 
B)  doing so would maintain the obligation of the obligor. 
C)  statute or public policy forbids the assignment. 
D)  the contract itself precludes assignment. 
E)  the assignor must make known his intention to transfer the rights to the third person.

Question 2

What is vesting of rights?

Accepted Answer

A)  Surrender by a party of legal rights otherwise available to him or her 
B)  The time at which the benefit of a contract is fixed in the beneficiary 
C)  An assignee taking equal rights as his assignor 
D)  The right or duty of a particular person to perform or receive contract duties or benefits 
E)  A new contract substituting for an old one, or a new party to a contract replacing a former party 
A)  Surrender by a party of legal rights otherwise available to him or her 
B)  The time at which the benefit of a contract is fixed in the beneficiary 
C)  An assignee taking equal rights as his assignor 
D)  The right or duty of a particular person to perform or receive contract duties or benefits 
E)  A new contract substituting for an old one, or a new party to a contract replacing a former party

Question 3

Most duties in a contract are almost never expressly delegated.

Accepted Answer

A) True 
 B)False

Question 4

An obligee is one who has the right to receive a contract benefit.

Accepted Answer

A) True 
 B)False

Question 5

A right that will arise from a future contract cannot be the subject of a present assignment.

Accepted Answer

A) True 
 B)False

Question 6

The beneficiary's rights may be altered as long as they have not vested.

Accepted Answer

A) True 
 B)False

Question 7

To effect an assignment, the assignor must make known his intention to transfer the rights to the third person.

Accepted Answer

A) True 
 B)False

Question 8

Who is an intended beneficiary?

Accepted Answer

In the vocabulary of the Restatement, a

Question 9

One to whom an obligation is owed is an) _____

Accepted Answer

A)  donee beneficiary. 
B)  intended beneficiary. 
C)  obligor 
D)  obligee 
E)  delegator 
A)  donee beneficiary. 
B)  intended beneficiary. 
C)  obligor 
D)  obligee 
E)  delegator

Question 10

Problems of acceptance of an assignment normally arise only when the assignor intends the assignment as a gift.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following will occur if a statute or public policy forbids an assignment?

Accepted Answer

A)  The obligation of the obligor changes. 
B)  The obligee will become the assignor. 
C)  The assignor will not assign any right. 
D)  The contract will preclude the assignment. 
E)  The obligor is burdened by the obligation. 
A)  The obligation of the obligor changes. 
B)  The obligee will become the assignor. 
C)  The assignor will not assign any right. 
D)  The contract will preclude the assignment. 
E)  The obligor is burdened by the obligation.

Question 12

Members of the public are intended beneficiaries of contracts made by the government with a contractor to do public works.

Accepted Answer

A) True 
 B)False

Exam 14: Third-Party Rights

The "shoe rule" does not apply when _____

What is vesting of rights?

Most duties in a contract are almost never expressly delegated.

An obligee is one who has the right to receive a contract benefit.

A right that will arise from a future contract cannot be the subject of a present assignment.

The beneficiary's rights may be altered as long as they have not vested.

To effect an assignment, the assignor must make known his intention to transfer the rights to the third person.

Who is an intended beneficiary?

One to whom an obligation is owed is an) _____

Problems of acceptance of an assignment normally arise only when the assignor intends the assignment as a gift.

Which of the following will occur if a statute or public policy forbids an assignment?

Members of the public are intended beneficiaries of contracts made by the government with a contractor to do public works.

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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