Question 1

A promisor and a promisee may provide that the benefits under a contract will never vest in a third person.

Accepted Answer

A) True 
 B)False

Question 2

A(n)____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

Accepted Answer

A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary 
A)  incidental beneficiary 
B)  intended beneficiary 
C)  assignor 
D)  donee beneficiary

Question 3

Lauren received a $1,500 scholarship to attend the local community college.She decides not to attend college that year,so she can assign her right to the scholarship to her friend,Sean.

Accepted Answer

A) True 
 B)False

Question 4

Odessa owes Kevin $2,000.On July 1,Kevin assigns the right to the $2,000 to Troy.Thereafter,on July 15,Kevin assigns the same right to Donna,who in good faith gives value for it and knows nothing about the first assignee.In this case:

Accepted Answer

A)  Troy has the right to the payment of $2,000. 
B)  Donna has the right to the $2,000. 
C)  neither Troy nor Donna can claim the $2,000. 
D)  the rule differs in different states.Depending on which rule a state follows,the answer will vary. 
A)  Troy has the right to the payment of $2,000. 
B)  Donna has the right to the $2,000. 
C)  neither Troy nor Donna can claim the $2,000. 
D)  the rule differs in different states.Depending on which rule a state follows,the answer will vary.

Question 5

An assignor is bound by any express warranties he makes to the assignee with respect to the right assigned.

Accepted Answer

A) True 
 B)False

Question 6

In a minority of states,the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Accepted Answer

A) True 
 B)False

Question 7

Notice of an assignment:

Accepted Answer

A)  cuts off any defenses based on subsequent agreements between the obligor and assignor. 
B)  does not prevent subsequent setoffs of the obligor that arise out of separate matters. 
C)  does not bar subsequent counterclaims of the obligor that arise out of separate matters. 
D)  has no effect on defenses based on subsequent agreements between the obligor and assignor or on subsequent setoffs and counterclaims of the obligor that arise out of separate matters. 
A)  cuts off any defenses based on subsequent agreements between the obligor and assignor. 
B)  does not prevent subsequent setoffs of the obligor that arise out of separate matters. 
C)  does not bar subsequent counterclaims of the obligor that arise out of separate matters. 
D)  has no effect on defenses based on subsequent agreements between the obligor and assignor or on subsequent setoffs and counterclaims of the obligor that arise out of separate matters.

Question 8

Partial assignments of contract rights are not enforceable.

Accepted Answer

A) True 
 B)False

Question 9

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. 
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.

Question 10

Ron owes Lloyd $500 due March 1.Lloyd assigns his right to the money to Lou,but neither Lloyd nor Lou notifies Ron.On March 1,Ron pays Lloyd the $500.Ron is not discharged from his obligation,but is liable to Lou for the money.

Accepted Answer

A) True 
 B)False

Question 11

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 
A)  Donee beneficiaries 
B)  Creditor beneficiaries 
C)  Incidental beneficiaries 
D)  Intended beneficiaries

Question 12

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. 
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.

Question 13

The law governing assignments is found in Articles ____ and ____ of the Uniform Commercial Code (UCC),as well as the common law.

Accepted Answer

A)  1 and 2 
B)  2 and 4 
C)  2 and 9 
D)  3 and 4 
A)  1 and 2 
B)  2 and 4 
C)  2 and 9 
D)  3 and 4

Question 14

The UCC prohibits assignments of $5,000 or more.

Accepted Answer

A) True 
 B)False

Question 15

Owen has a contract to build a garage.He delegates the wiring job to a local electrician who improperly performs it.Owen is responsible,even though he delegated the duty.

Accepted Answer

A) True 
 B)False

Question 16

Consideration is required in order to have a valid assignment.

Accepted Answer

A) True 
 B)False

Question 17

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter,Sue,as a graduation present.In this contract,Sue is:

Accepted Answer

A)  an incidental beneficiary. 
B)  a donee beneficiary. 
C)  a creditor beneficiary. 
D)  an assignor. 
A)  an incidental beneficiary. 
B)  a donee beneficiary. 
C)  a creditor beneficiary. 
D)  an assignor.

Question 18

The voluntary transfer of a contractual right to a third party is known as a(n):

Accepted Answer

A)  implied warranty. 
B)  assignment. 
C)  delegation. 
D)  novation. 
A)  implied warranty. 
B)  assignment. 
C)  delegation. 
D)  novation.

Question 19

An intended donee beneficiary may enforce the contract only against the promisor.

Accepted Answer

A) True 
 B)False

Question 20

An incidental beneficiary to a contract does not have the right to enforce the contract.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

A promisor and a promisee may provide that the benefits under a contract will never vest in a third person.

A(n)____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

Lauren received a $1,500 scholarship to attend the local community college.She decides not to attend college that year,so she can assign her right to the scholarship to her friend,Sean.

Odessa owes Kevin $2,000.On July 1,Kevin assigns the right to the $2,000 to Troy.Thereafter,on July 15,Kevin assigns the same right to Donna,who in good faith gives value for it and knows nothing about the first assignee.In this case:

An assignor is bound by any express warranties he makes to the assignee with respect to the right assigned.

In a minority of states,the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Notice of an assignment:

Partial assignments of contract rights are not enforceable.

Which of the following duties would not be delegable?

Ron owes Lloyd $500 due March 1.Lloyd assigns his right to the money to Lou,but neither Lloyd nor Lou notifies Ron.On March 1,Ron pays Lloyd the $500.Ron is not discharged from his obligation,but is liable to Lou for the money.

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

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

The law governing assignments is found in Articles ____ and ____ of the Uniform Commercial Code (UCC),as well as the common law.

The UCC prohibits assignments of $5,000 or more.

Owen has a contract to build a garage.He delegates the wiring job to a local electrician who improperly performs it.Owen is responsible,even though he delegated the duty.

Consideration is required in order to have a valid assignment.

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter,Sue,as a graduation present.In this contract,Sue is:

The voluntary transfer of a contractual right to a third party is known as a(n):

An intended donee beneficiary may enforce the contract only against the promisor.

An incidental beneficiary to a contract does not have the right to enforce the contract.

Introduction to Law

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Civil Dispute Resolution

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A: Administrative Law

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Intentional Torts

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Introduction to Contracts

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Relationship of Principal and Agent

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Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

The law governing assignments is found in Articles and of the Uniform Commercial Code (UCC),as well as the common law.