Exam 11: Third Party Rights and Discharge

An assignment of an insurance policy cannot be prohibited.

An unconditional assignment of rights in a contract will extinguish the rights of the as?signor.

Tia signs a lease that states that any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts a new zoning classification that affects the lease.This adoption satis?fies

Julio contracts to provide lawn-mowing services to Kevin for $140 per month.Julio can?not transfer this duty

Red operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Sabin in six months.An un?fore?seen shortage of scrap steel suddenly develops,making it impossible for Red to fulfill his contract for less than $500 per ton.Red's best de?fense against performing the contract would be

Roy and Sheila are parties to a contract.They subse?quently agree that Tony should take Roy's place and assume all of his rights and duties under the contract.This is

A transfer of contract rights to a third party is an assignment.

Fact Pattern 11-1 Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 11-1.With respect to Mutual's duties,Neil's performance most likely

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

Rural Development Corporation (RDC)and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is

Fact Pattern 11-1 Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 11-1.Neil's performance is most likely

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

An event must be certain to occur to constitute a contractual condition.

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 pur?chase price on July 31.The delivery of the washing machine and the payment of $500 are ex?amples of

Protective Finishes,Inc.(PFI),agrees to paint Quinn's house,using a particular brand of "discount" paint.PFI completes the job but uses a dif?ferent brand of discounted paint.This is most likely

Notice is not legally required to establish the validity of an assignment.

Milo and Nate enter into a contract under which Nate is to wash the windows at Milo's warehouse.When Nate's schedule conflicts,he asks Ollie to perform his window-washing duties.This transfer of duties is

Felipe agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract.Felipe's estate

Farley agrees to lease an apart?ment from Gena for one day to see Hugh,the president of the United States,deliver a speech in the street below.The speech is can?celed ten days before its date.Farley's con?tract with Gena

Complete Rehab Corporation substantially performs its contract with Downtown Retail,Inc.Downtown is entitled to