Exam 16: Third Parties to Contracts

Consideration is required in order to have a valid assignment.

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.

An incidental beneficiary has no right to enforce a contract.

Mary goes to a stockbroker, purchases 50 shares of a certain stock, and instructs the broker to register the stock in her husband Warren's name.If this stock is intended as a Valentine's Day gift, Warren becomes a(n):

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

As a general rule, most contract rights are assignable.

Notice of an assignment:

Lynne is the intended beneficiary of a third-party contract.Her rights have vested.In an action by Lynne to enforce the promise, the promisor may assert the defense of:

Which of the following duties would not be delegable?

Betty owes Agatha $1,000.On March 1 Agatha, for value, assigned the debt to Clara.Thereafter, on March 30, Agatha assigned the same right to Diane.Under the:

The party to whom a contractual duty of performance is owed is known as the:

Barbara owes Arturo $2,000.On July 1, Arturo assigns the debt to Charles.Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee.Dennis immediately notifies Barbara of the assignment.Under:

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

Which of the following involves a creditor beneficiary relationship?

Contractual duties are assignable.

In a third­party beneficiary contract, the third party's rights arise after the contract is made.

The Restatement and Article 2 of the Code provide that, unless circumstances indicate the contrary, a contract term that prohibits the assignment of a contract bars only the delegation to the assignee of the assignor's duty of performance and does not bar the assignment of contract rights.

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

Some states have statutes which prohibit an employee from assigning his future wages.

Professor Dought 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 Dought's mother is a(n):