Question 1

No special form is required to create a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The assignment of the same contract right to two different parties results in their "splitting the difference."

Accepted Answer

A) True 
 B)False

Question 4

A promise to perform under a contract is never absolute.

Accepted Answer

A) True 
 B)False

Question 5

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

Accepted Answer

A)  breaches the contract. 
B)  discharges the contract. 
C)  has no effect on the contract. 
D)  suspends the contract.

Question 6

An "assignment of all rights" absolves the assignor of all liability under the contract that created the rights.

Accepted Answer

A) True 
 B)False

Question 7

Building Restoration,Inc.(BRI),enters into a contract to refurbish an old train depot for Casual Dining,Inc.,to open as Eat Up Restaurant.If BRI completes most of the work promised in the contract,its performance will be

Accepted Answer

A)  absolute. 
B)  complete. 
C)  material. 
D)  substantial.

Question 8

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

Accepted Answer

A)  absolute. 
B)  complete. 
C)  conditional. 
D)  substantial.

Question 9

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica 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.

Question 10

A contract can prevent the assignment of the right to receive funds.

Accepted Answer

A) True 
 B)False

Question 11

An incidental beneficiary can sue directly to enforce a promisee's promise.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  a delegation. 
B)  an assignment. 
C)  a novation. 
D)  prohibited by law.

Question 13

Fact Pattern 13-1 (Questions 23-24 apply)
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 13-1.Neil's performance is most likely

Accepted Answer

A)  a material breach. 
B)  a minor breach. 
C)  Mutual's breach. 
D)  no breach.

Question 14

Contracts that are executory on both sides can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 15

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

Accepted Answer

A) True 
 B)False

Question 16

Nick and Roberta contract for the sale of computer equipment,reserving the right to alter a particular provision in the contract.The rights of any third party beneficiary of that contract are

Accepted Answer

A)  not affected by the reservation. 
B)  limited to the extent of the reservation. 
C)  limited only if the beneficiary agrees to the reservation. 
D)  none of the choices.

Question 17

Fact Pattern 13-3
Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples.
-Refer to Fact Pattern 13-3.When the market price for apples exceeds the price in the contract with Fresh Produce,Haruko decides not to deliver the apples. This

Accepted Answer

A)  breaches the contract. 
B)  discharges the contract. 
C)  has no effect on the contract. 
D)  suspends the contract.

Question 18

All rights can be assigned.

Accepted Answer

A) True 
 B)False

Question 19

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 20

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.

Accepted Answer

A) True 
 B)False

Exam 13: Third Party Rights and Discharge

No special form is required to create a delegation of duties.

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

The assignment of the same contract right to two different parties results in their "splitting the difference."

A promise to perform under a contract is never absolute.

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

An "assignment of all rights" absolves the assignor of all liability under the contract that created the rights.

Building Restoration,Inc.(BRI) ,enters into a contract to refurbish an old train depot for Casual Dining,Inc.,to open as Eat Up Restaurant.If BRI completes most of the work promised in the contract,its performance will be

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

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

A contract can prevent the assignment of the right to receive funds.

An incidental beneficiary can sue directly to enforce a promisee's promise.

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

Contracts that are executory on both sides can be rescinded by agreement.

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

Nick and Roberta contract for the sale of computer equipment,reserving the right to alter a particular provision in the contract.The rights of any third party beneficiary of that contract are

Fact Pattern 13-3 Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bush¬els of apples. -Refer to Fact Pattern 13-3.When the market price for apples exceeds the price in the contract with Fresh Produce,Haruko decides not to deliver the apples. This

All rights can be assigned.

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

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.