Question 1

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Accepted Answer

A) True 
 B)False

Question 2

In England and 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 3

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. 
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.

Question 4

A duty may not be delegated if there is an express provision in a contract against delegation.

Accepted Answer

A) True 
 B)False

Question 5

When the rights under a contract are highly personal, they are not assignable.

Accepted Answer

A) True 
 B)False

Question 6

A transfer to a third party of a contractual obligation is known as a(n):

Accepted Answer

A)  assignment of rights. 
B)  delegation of duties. 
C)  revocability of assignment. 
D)  partial assignment. 
A)  assignment of rights. 
B)  delegation of duties. 
C)  revocability of assignment. 
D)  partial assignment.

Question 7

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

Accepted Answer

A) True 
 B)False

Question 8

The obligor need not receive notice for an assignment to be valid.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following assignments would probably be prohibited by a court?

Accepted Answer

A)  Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor. 
B)  John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to begin the job at Molly's. 
C)  Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service. 
D)  All of these. 
A)  Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor. 
B)  John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to begin the job at Molly's. 
C)  Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service. 
D)  All of these.

Question 10

In the case of Speelman v. Pascal , the court held that:

Accepted Answer

A)  a gratuitous assignment is terminated by the assignor's death, even if the assignor made an effective delivery of the assignment prior to his death. 
B)  assignments of rights to sums that are expected to become due to the assignor are enforceable. 
C)  assignments cannot be made of sums that are not presently due but are expected to become due in the future. 
D)  personal contracts are not assignable. 
A)  a gratuitous assignment is terminated by the assignor's death, even if the assignor made an effective delivery of the assignment prior to his death. 
B)  assignments of rights to sums that are expected to become due to the assignor are enforceable. 
C)  assignments cannot be made of sums that are not presently due but are expected to become due in the future. 
D)  personal contracts are not assignable.

Question 11

If Randall and Gale agree to an assignment of Randall's contract with Doug:

Accepted Answer

A)  there is no ambiguity; this is an assignment of rights only. 
B)  there is no ambiguity; this is a delegation of duties only. 
C)  under both the Code and the Restatement, unless circumstances or language indicate the contrary, an assignment of "the contract" means the assignment of rights and a delegation of duties. 
D)  the language is ambiguous and, therefore, the assignment is unenforceable. 
A)  there is no ambiguity; this is an assignment of rights only. 
B)  there is no ambiguity; this is a delegation of duties only. 
C)  under both the Code and the Restatement, unless circumstances or language indicate the contrary, an assignment of "the contract" means the assignment of rights and a delegation of duties. 
D)  the language is ambiguous and, therefore, the assignment is unenforceable.

Question 12

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Accepted Answer

A)  Brad's death has no effect on the assignment. 
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 gratuitous. 
A)  Brad's death has no effect on the assignment. 
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 gratuitous.

Question 13

Discuss defenses available to the promisor in an action by an intended third-party beneficiary to enforce the promise.

Accepted Answer

In an action by an intended beneficiary

Question 14

In an assignment or delegation, the third parties' rights or duties arise after the contract is made.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following involves an invalid assignment that a court would not enforce?

Accepted Answer

A)  An assignment of a savings account accompanied by the delivery of the passbook. 
B)  An assignment lacking consideration. 
C)  An assignment of an automobile liability insurance policy accompanied by the delivery of the policy. 
D)  An assignment in writing signed by the assignor and delivered to the assignee. 
A)  An assignment of a savings account accompanied by the delivery of the passbook. 
B)  An assignment lacking consideration. 
C)  An assignment of an automobile liability insurance policy accompanied by the delivery of the policy. 
D)  An assignment in writing signed by the assignor and delivered to the assignee.

Question 18

An incidental beneficiary has no right to enforce a contract.

Accepted Answer

A) True 
 B)False

Question 19

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

Accepted Answer

A) True 
 B)False

Question 20

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

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

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:

A duty may not be delegated if there is an express provision in a contract against delegation.

When the rights under a contract are highly personal, they are not assignable.

A transfer to a third party of a contractual obligation is known as a(n):

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

The obligor need not receive notice for an assignment to be valid.

Which one of the following assignments would probably be prohibited by a court?

In the case of Speelman v. Pascal , the court held that:

If Randall and Gale agree to an assignment of Randall's contract with Doug:

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Discuss defenses available to the promisor in an action by an intended third-party beneficiary to enforce the promise.

In an assignment or delegation, the third parties' rights or duties arise after the contract is made.

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

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

Which of the following involves an invalid assignment that a court would not enforce?

An incidental beneficiary has no right to enforce a contract.

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

According to the Restatement, unless circumstances indicate the contrary, a contract term prohibiting assignment of the contract bars both the assignment of rights and the delegation to the assignee of the assignor's duty of performance.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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