Question 1

The rights of a third party beneficiary under a contract with two other parties vest when the conditions for vesting are satisfied.

Accepted Answer

A) True 
 B)False  True

Question 2

A novation revokes and discharges a prior contract.

Accepted Answer

A) True 
 B)False  True

Question 3

The rights of a third party bene?ficiary under a contract are subject to any express reservation of rights in the contract to the original parties.

Accepted Answer

A) True 
 B)False  True

Question 4

To be enforceable,any assignment must be in writing.

Accepted Answer

A) True 
 B)False

Question 5

Elin contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Elin's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,and no wine is delivered that day.On the morning of May 2,Elin buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Elin's residence.Elin refuses tender.Grapes & Vines sues Elin for breach of contract.How is the court most likely to rule?

Accepted Answer

In most courts,the decision will rest on

Question 6

A contract that involves mechanical fitness is a contract in which per?formance must per?sonally satisfy the party to whom per?formance is owed.

Accepted Answer

A) True 
 B)False

Question 7

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Accepted Answer

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

Question 8

Concurrent conditions occur only when the parties to a contract are re?quired to per?form their respective duties simultaneously.

Accepted Answer

A) True 
 B)False

Question 9

Musical Production Company and Nora enter into a contract that calls for Nora to write six songs for which Musical agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is

Accepted Answer

A) a delegator. 
B) an assignor. 
C) a payor. 
D) a righter. 
A) a delegator. 
B) an assignor. 
C) a payor. 
D) a righter.

Question 10

Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors.Dino agrees to deliver the survey by July 1.Candy's offer,on July 1,to pay Dino is

Accepted Answer

A) complete. 
B) substantial. 
C) tender. 
D) tough. 
A) complete. 
B) substantial. 
C) tender. 
D) tough.

Question 11

The benefit that an incidental beneficiary receives from a contract between two other parties is unintentional.

Accepted Answer

A) True 
 B)False

Question 12

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Accepted Answer

A) at any time. 
B) at no time. 
C) only after Jen's rights have vested. 
D) only before Jen's rights have vested. 
A) at any time. 
B) at no time. 
C) only after Jen's rights have vested. 
D) only before Jen's rights have vested.

Question 13

A third party beneficiary contract is formed only when the parties to a contract intend to con?fer a benefit on a third party.

Accepted Answer

A) True 
 B)False

Question 14

Riley and Sheila enter into a contract for the sale of Riley's condominium to Sheila.Sheila transfers her right to be recorded as the owner of the property to her daughter Tricia.This transfer is

Accepted Answer

A) a delegation. 
B) an assignment. 
C) an accord and satisfaction. 
D) a negotiation. 
A) a delegation. 
B) an assignment. 
C) an accord and satisfaction. 
D) a negotiation.

Question 15

Performance of an accord discharges an original contractual obligation.

Accepted Answer

A) True 
 B)False

Question 16

Basil,a world-famous chef,signs a contract to give lessons in French cooking to Marge.Basil wants to transfer his duties under the con?tract to Harv,the operator of a hot dog concession.The transfer is

Accepted Answer

A) valid. 
B) valid only if Harv is a highly regarded barbecue chef. 
C) not valid because performance of the contract depends on Basil's unique skills. 
D) not valid only if Marge detests barbecued foods. 
A) valid. 
B) valid only if Harv is a highly regarded barbecue chef. 
C) not valid because performance of the contract depends on Basil's unique skills. 
D) not valid only if Marge detests barbecued foods.

Question 17

A promise to perform under a contract is never absolute.

Accepted Answer

A) True 
 B)False

Question 18

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.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 19

Bret and Cory enter into a contract under which Bret agrees to sell his textbook to Cory for $60 at the end of the fall semester.Bret wants to transfer his right to payment for the book to Del.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 20

A right to receive damages on a breach of a contract for a sale of goods may be assigned.

Accepted Answer

A) True 
 B)False

Exam 11: Third Party Rights and Discharge

The rights of a third party beneficiary under a contract with two other parties vest when the conditions for vesting are satisfied.

A novation revokes and discharges a prior contract.

The rights of a third party bene?ficiary under a contract are subject to any express reservation of rights in the contract to the original parties.

To be enforceable,any assignment must be in writing.

A contract that involves mechanical fitness is a contract in which per?formance must per?sonally satisfy the party to whom per?formance is owed.

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Concurrent conditions occur only when the parties to a contract are re?quired to per?form their respective duties simultaneously.

Musical Production Company and Nora enter into a contract that calls for Nora to write six songs for which Musical agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is

Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors.Dino agrees to deliver the survey by July 1.Candy's offer,on July 1,to pay Dino is

The benefit that an incidental beneficiary receives from a contract between two other parties is unintentional.

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

A third party beneficiary contract is formed only when the parties to a contract intend to con?fer a benefit on a third party.

Riley and Sheila enter into a contract for the sale of Riley's condominium to Sheila.Sheila transfers her right to be recorded as the owner of the property to her daughter Tricia.This transfer is

Performance of an accord discharges an original contractual obligation.

Basil,a world-famous chef,signs a contract to give lessons in French cooking to Marge.Basil wants to transfer his duties under the con?tract to Harv,the operator of a hot dog concession.The transfer is

A promise to perform under a contract is never absolute.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer

Bret and Cory enter into a contract under which Bret agrees to sell his textbook to Cory for $60 at the end of the fall semester.Bret wants to transfer his right to payment for the book to Del.This transfer

A right to receive damages on a breach of a contract for a sale of goods may be assigned.

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