Question 1

Contract duties are not assigned-they are delegated.

Accepted Answer

A) True 
 B)False

Question 2

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves​

Accepted Answer

A)  ​a right to receive payment. 
B)  ​a right to Ben's services. 
C)  ​rights under Ivy's insurance policy against Ben's failing to perform. 
D)  ​a right whose transfer is otherwise expressly prohibited by statute.

Question 3

A delegation relieves the party making it of the obligation to perform.

Accepted Answer

A) True 
 B)False

Question 4

Carol takes out an insurance policy on her car.Carol can assign her policy to a third party

Accepted Answer

A)  ​under any circumstances. 
B)  ​underno circumstances. 
C)  ​as long as she does so in writing. 
D)  ​if a court approves the assignment.

Question 5

A-One Landscapers,Inc.,owes Friendly Finance Company $5,000.A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban's property.Under the contract,Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One's debt to Friendly Finance is paid.A-One performs as promised,but Suburban does not pay Friendly Finance.Can Friendly Finance succeed in a suit against Suburban? Why or why not?​

Accepted Answer

The answer of A-One Landscapers,Inc.,owes Friendly Finance Company $5,000.A-One enters...

Question 6

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Accepted Answer

A)  ​any assignment. 
B)  ​no assignment. 
C)  ​only an assignment of contract rights to personal services. 
D)  ​only an assignment that would change the obligor's risk.

Question 7

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000.Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber.Sav-U is​

Accepted Answer

A)  ​a delegatee. 
B)  ​an intended beneficiary. 
C)  ​an incidental beneficiary. 
D)  ​an assignor.

Question 8

An assignment of rights in real estate often cannot be prohibited.

Accepted Answer

A) True 
 B)False

Question 9

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

Accepted Answer

A) True 
 B)False

Question 10

In a bilateral contract,a party who makes a promise that benefits a third party is a promisor.

Accepted Answer

A) True 
 B)False

Question 11

Giving notice is legally necessary to establish the validity of an assignment.

Accepted Answer

A) True 
 B)False

Question 12

The person to whom rights in a contract are assigned is the assignor.

Accepted Answer

A) True 
 B)False

Question 13

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Accepted Answer

A) True 
 B)False

Question 14

An assignee has a right to demand performance from the obligor.

Accepted Answer

A) True 
 B)False

Question 15

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 16

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is​

Accepted Answer

A)  ​absolved of any liability under the contract. 
B)  ​in breach of the contract with Joy. 
C)  ​liable to Joy if Leza does not perform. 
D)  ​liable to Leza for inducing a prohibited contract.

Question 17

Pam borrows $5,000 from Quality Auto Sales to buy a car.When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency.Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed.Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legitimately refuse to pay Rapid? Explain.

Accepted Answer

The answer of Pam borrows $5,000 from Quality Auto Sales...

Question 18

As long as a contract is personal in nature,all rights under the contract can be assigned.

Accepted Answer

A) True 
 B)False

Question 19

Merry Music Inc.and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her.Nayda transfers her right to payment under the contract to Omni Artists Agency.In the transfer of rights,Nayda is

Accepted Answer

A)  ​a delegator. 
B)  ​an assignor. 
C)  ​an obligor. 
D)  ​a third party beneficiary.

Question 20

App Developers,Inc.(ADI),enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm.To fulfill the contract,ADI hires Max and ten other student interns.With respect to the contract,Max is​

Accepted Answer

A)  ​an intended beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​a delegatee. 
D)  ​an assignee.

Exam 16: Third Party Rights

Contract duties are not assigned-they are delegated.

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves

A delegation relieves the party making it of the obligation to perform.

Carol takes out an insurance policy on her car.Carol can assign her policy to a third party

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000.Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber.Sav-U is

An assignment of rights in real estate often cannot be prohibited.

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

In a bilateral contract,a party who makes a promise that benefits a third party is a promisor.

Giving notice is legally necessary to establish the validity of an assignment.

The person to whom rights in a contract are assigned is the assignor.

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

An assignee has a right to demand performance from the obligor.

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

As long as a contract is personal in nature,all rights under the contract can be assigned.

Merry Music Inc.and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her.Nayda transfers her right to payment under the contract to Omni Artists Agency.In the transfer of rights,Nayda is

App Developers,Inc.(ADI) ,enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm.To fulfill the contract,ADI hires Max and ten other student interns.With respect to the contract,Max is

Exam 16: Third Party Rights

Contract duties are not assigned-they are delegated.

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves​

A delegation relieves the party making it of the obligation to perform.

Carol takes out an insurance policy on her car.Carol can assign her policy to a third party

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000.Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber.Sav-U is​

An assignment of rights in real estate often cannot be prohibited.

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

In a bilateral contract,a party who makes a promise that benefits a third party is a promisor.

Giving notice is legally necessary to establish the validity of an assignment.

The person to whom rights in a contract are assigned is the assignor.

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

An assignee has a right to demand performance from the obligor.

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is​

As long as a contract is personal in nature,all rights under the contract can be assigned.

Merry Music Inc.and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her.Nayda transfers her right to payment under the contract to Omni Artists Agency.In the transfer of rights,Nayda is

App Developers,Inc.(ADI) ,enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm.To fulfill the contract,ADI hires Max and ten other student interns.With respect to the contract,Max is​

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000.Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber.Sav-U is

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

App Developers,Inc.(ADI) ,enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm.To fulfill the contract,ADI hires Max and ten other student interns.With respect to the contract,Max is