Question 1

A party delegating his duty to a third party is known as a delegator.

Accepted Answer

A) True 
 B)False

Question 2

All but which of the following is true about a delegation of duties?

Accepted Answer

A)  When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee.
B)  Contractual duties are generally delegable.
C)  The courts will examine an assignment more closely than a delegation.
D)  A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract.E) None of the above
F) A) and D)

Question 3

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Accepted Answer

A)  Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business.
B)  Workers, where a contractor agrees to post a performance bond to assure payment of workers and material men.
C)  A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.
D)  A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.E) All of the above
F) B) and C)

Question 4

An incidental beneficiary has a right to enforce a contract.

Accepted Answer

A) True 
 B)False

Question 5

Anita owes Brad $75,000.Brad signs a written statement granting Carl a gratuitous assignment of his rights from Anita.If Brad delivers the signed statement to Carl before he dies:

Accepted Answer

A)  the delivery of the statement makes the assignment irrevocable.
B)  the assignment is terminated upon Brad's death.
C)  the signing of the statement makes the assignment irrevocable.
D)  the assignment is invalid, because it is revocable.E) A) and B)
F) A) and C)

Question 6

Under the Restatement, if there are successive assignments of the same right:

Accepted Answer

A)  the first assignee to notify the obligor prevails.
B)  the latest assignee is usually entitled to the assigned right.
C)  a prior assignee is entitled to the assigned right to the exclusion of a subsequent assignee in most circumstances.
D)  a subsequent assignee is entitled to the assigned right unless a prior assignee gave value and obtains either a judgment against the obligor or a new contract with the obligor.E) A) and B)
F) B) and D)

Question 7

When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

Accepted Answer

A) True 
 B)False

Question 8

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Accepted Answer

A) True 
 B)False

Question 9

A person who owes a duty under a contract is an obligee.

Accepted Answer

A) True 
 B)False

Question 10

Name four types of contract rights that are non-assignable.

Accepted Answer

Non-assignable contract rights include t...

Question 11

An implied warranty is an obligation imposed by law upon the transferor of property or contract rights.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following duties would not be delegable?

Accepted Answer

A)  John has a contractual duty to pay Isaac $50.
B)  Karl has a contractual duty to deliver 50 bushels of corn to Michael by October 1.
C)  Jeffrey has a duty to mow Georgia's lawn at least once a week.
D)  Arthur has a duty to teach an accounting class at a community college during the fall semester.E) A) and D)
F) A) and B)

Question 13

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Accepted Answer

A) True 
 B)False

Question 14

In a third-party beneficiary contract, the third party's rights arise after the original contract is formed.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT true concerning the requirements for an effective assignment?

Accepted Answer

A)  The assignment must be voluntary.
B)  Consideration is required.
C)  There must be an intention to make the assignee the owner of the right.
D)  The assignment may be either written or oral.E) B) and C)
F) A) and D)

Question 16

After an assignment, only the assignee has a right to the obligor's performance.

Accepted Answer

A) True 
 B)False

Question 17

The privilege to play tennis and socialize at the Capital City Country Club (CCCC)  is obtained through application, references, resumes, and fees.Steven and Chanel want to assign the remaining 4 years of their 5-year membership to Charles and Prissy so that Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club.CCCC sues to enjoin Steven and Chanel from assigning their membership.CCCC will probably:

Accepted Answer

A)  not prevail because all contract rights are assignable.
B)  prevail because the parties intended the contract to be personal and non-assignable.
C)  not prevail because the membership contract constitutes a lease.
D)  None of the above.E) B) and D)
F) B) and C)

Question 18

Courts will enforce contracts for the benefit of all but which of the following?

Accepted Answer

A)  Donee beneficiaries.
B)  Creditor beneficiaries.
C)  Incidental beneficiaries.
D)  Intended beneficiaries.E) All of the above
F) A) and D)

Question 19

Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Professor Doright's mother is a(n) :

Accepted Answer

A)  incidental beneficiary.
B)  creditor beneficiary.
C)  donee beneficiary.
D)  assignee.E) B) and C)
F) C) and D)

Question 20

A contract in which a party promises to render a certain performance not to the other party but to a third person is called a third-party beneficiary contract.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

Under the Restatement, if there are successive assignments of the same right:

Correct Answer
verified

An implied warranty is an obligation imposed by law upon the transferor of property or contract rights.

Correct Answer
verified

Correct Answer
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The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Correct Answer
verified

A party delegating his duty to a third party is known as a delegator.

Correct Answer
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In a third-party beneficiary contract, the third party's rights arise after the original contract is formed.

Correct Answer
verified

All but which of the following is true about a delegation of duties?

Correct Answer
verified

A person who owes a duty under a contract is an obligee.

Correct Answer
verified

Name four types of contract rights that are non-assignable.

Correct Answer
verified
Non-assignable contract rights include t...
View Answer

Which of the following duties would not be delegable?

Correct Answer
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Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Professor Doright's mother is a(n) :

Correct Answer
verified

A contract in which a party promises to render a certain performance not to the other party but to a third person is called a third-party beneficiary contract.

Correct Answer
verified

An incidental beneficiary has a right to enforce a contract.

Correct Answer
verified

Courts will enforce contracts for the benefit of all but which of the following?

Correct Answer
verified

Which of the following is NOT true concerning the requirements for an effective assignment?

Correct Answer
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When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

Correct Answer
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An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Correct Answer
verified

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Correct Answer
verified

After an assignment, only the assignee has a right to the obligor's performance.

Correct Answer
verified

Anita owes Brad $75,000.Brad signs a written statement granting Carl a gratuitous assignment of his rights from Anita.If Brad delivers the signed statement to Carl before he dies:

Correct Answer
verified

Exam 16: Third Parties to Contracts

Under the Restatement, if there are successive assignments of the same right:

Correct AnswerverifiedShow Answer

An implied warranty is an obligation imposed by law upon the transferor of property or contract rights.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Correct AnswerverifiedShow Answer

A party delegating his duty to a third party is known as a delegator.

Correct AnswerverifiedShow Answer

In a third-party beneficiary contract, the third party's rights arise after the original contract is formed.

Correct AnswerverifiedShow Answer

All but which of the following is true about a delegation of duties?

Correct AnswerverifiedShow Answer

A person who owes a duty under a contract is an obligee.

Correct AnswerverifiedShow Answer

Name four types of contract rights that are non-assignable.

Correct AnswerverifiedNon-assignable contract rights include t...View AnswerShow Answer

Which of the following duties would not be delegable?

Correct AnswerverifiedShow Answer

Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds.Professor Doright's mother is a(n) :

Correct AnswerverifiedShow Answer

A contract in which a party promises to render a certain performance not to the other party but to a third person is called a third-party beneficiary contract.

Correct AnswerverifiedShow Answer

An incidental beneficiary has a right to enforce a contract.

Correct AnswerverifiedShow Answer

Courts will enforce contracts for the benefit of all but which of the following?

Correct AnswerverifiedShow Answer

Which of the following is NOT true concerning the requirements for an effective assignment?

Correct AnswerverifiedShow Answer

When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

Correct AnswerverifiedShow Answer

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Correct AnswerverifiedShow Answer

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Correct AnswerverifiedShow Answer

After an assignment, only the assignee has a right to the obligor's performance.

Correct AnswerverifiedShow Answer

Anita owes Brad $75,000.Brad signs a written statement granting Carl a gratuitous assignment of his rights from Anita.If Brad delivers the signed statement to Carl before he dies:

Correct AnswerverifiedShow Answer

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Non-assignable contract rights include t...
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