Question 1

Rights to receive funds can be assigned.​

Accepted Answer

A) True 
 B)False

Question 2

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because​

Accepted Answer

A)  ​Retail did not consent to the assignment. 
B)  ​Retail did not receive adequate consideration for the assignment. 
C)  ​the assignment will materially increase the risk of nonperformance. 
D)  ​Tough Road was not an original party to the deal. 
A)  ​Retail did not consent to the assignment. 
B)  ​Retail did not receive adequate consideration for the assignment. 
C)  ​the assignment will materially increase the risk of nonperformance. 
D)  ​Tough Road was not an original party to the deal.

Question 3

The most common way to discharge contractual duties is by breach of contract.​

Accepted Answer

A) True 
 B)False

Question 4

No contract can prohibit delegation of the duties of the contract.​

Accepted Answer

A) True 
 B)False

Question 5

An intentional failure to comply with the terms of a contract is not a breach.​

Accepted Answer

A) True 
 B)False

Question 6

An intended beneficiary can sue directly to enforce a promisor's promise.​

Accepted Answer

A) True 
 B)False

Question 7

An assignee has a right to demand performance from the obligor.​

Accepted Answer

A) True 
 B)False

Question 8

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty​

Accepted Answer

A)  ​under any circumstances. 
B)  ​without continuing to be potentially liable. 
C)  ​without Miles's consent. 
D)  ​without paying Miles at least one monthly fee. 
A)  ​under any circumstances. 
B)  ​without continuing to be potentially liable. 
C)  ​without Miles's consent. 
D)  ​without paying Miles at least one monthly fee.

Question 9

Marco and Ned enter into a contract for the sale of Marco's apartment for which Ned agrees to pay him $100,000. Marco cannot prohibit Ned from transferring his right to the ownership of the apartment because such a prohibition is​

Accepted Answer

A)  ​against public policy. 
B)  ​immoral. 
C)  ​unconscionable. 
D)  ​a crime. 
A)  ​against public policy. 
B)  ​immoral. 
C)  ​unconscionable. 
D)  ​a crime.

Question 10

​Anything less than complete performance is a material breach of contract.

Accepted Answer

A) True 
 B)False

Question 11

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations​

Accepted Answer

A)  ​must still be performed. 
B)  ​must now be renegotiated. 
C)  ​are on "hold." 
D)  ​are discharged. 
A)  ​must still be performed. 
B)  ​must now be renegotiated. 
C)  ​are on "hold." 
D)  ​are discharged.

Question 12

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is​

Accepted Answer

A)  ​a delegatee. 
B)  ​an intended beneficiary. 
C)  ​an incidental beneficiary. 
D)  ​an assignor. 
A)  ​a delegatee. 
B)  ​an intended beneficiary. 
C)  ​an incidental beneficiary. 
D)  ​an assignor.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform​

Accepted Answer

A)  ​remains absolute. 
B)  ​is discharged. 
C)  ​is excused. 
D)  ​is suspended. 
A)  ​remains absolute. 
B)  ​is discharged. 
C)  ​is excused. 
D)  ​is suspended.

Question 15

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit​

Accepted Answer

A)  ​must be filed within ten to twenty years, depending on state law. 
B)  ​can no longer be brought. 
C)  ​can be filed within four years after Kelly decides to sue. 
D)  ​must be filed between four and five years after Kelly decides to sue. 
A)  ​must be filed within ten to twenty years, depending on state law. 
B)  ​can no longer be brought. 
C)  ​can be filed within four years after Kelly decides to sue. 
D)  ​must be filed between four and five years after Kelly decides to sue.

Question 16

Fact Pattern 11-1 
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
-Refer to Fact Pattern 11-1. Natalie's performance is most likely​

Accepted Answer

A)  ​a material breach. 
B)  ​a minor breach. 
C)  ​a minimal breach. 
D)  ​no breach. 
A)  ​a material breach. 
B)  ​a minor breach. 
C)  ​a minimal breach. 
D)  ​no breach.

Question 17

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at State. This requirement is​

Accepted Answer

A)  ​an implied condition . 
B)  ​a concurrent condition. 
C)  ​a condition subsequent. 
D)  ​a condition precedent. 
A)  ​an implied condition . 
B)  ​a concurrent condition. 
C)  ​a condition subsequent. 
D)  ​a condition precedent.

Question 18

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves​

Accepted Answer

A)  ​a right to receive payment. 
B)  ​a right to Ben's services. 
C)  ​rights under Ivy's insurance policy against Ben's failing to perform. 
D)  ​none of the choices. 
A)  ​a right to receive payment. 
B)  ​a right to Ben's services. 
C)  ​rights under Ivy's insurance policy against Ben's failing to perform. 
D)  ​none of the choices.

Question 19

Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is​

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​rescinded. 
D)  ​suspended. 
A)  ​breached. 
B)  ​discharged. 
C)  ​rescinded. 
D)  ​suspended.

Question 20

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then​

Accepted Answer

A)  ​unchanged. 
B)  ​extinguished. 
C)  ​incidental. 
D)  ​assigned to a court. 
A)  ​unchanged. 
B)  ​extinguished. 
C)  ​incidental. 
D)  ​assigned to a court.

Rights to receive funds can be assigned.

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because

The most common way to discharge contractual duties is by breach of contract.

No contract can prohibit delegation of the duties of the contract.

An intentional failure to comply with the terms of a contract is not a breach.

An intended beneficiary can sue directly to enforce a promisor's promise.

An assignee has a right to demand performance from the obligor.

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Marco and Ned enter into a contract for the sale of Marco's apartment for which Ned agrees to pay him $100,000. Marco cannot prohibit Ned from transferring his right to the ownership of the apartment because such a prohibition is

Anything less than complete performance is a material breach of contract.

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is

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

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at State. This requirement is

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Exam 11: Third Party Rights and Discharge

Rights to receive funds can be assigned.​

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because​

The most common way to discharge contractual duties is by breach of contract.​

No contract can prohibit delegation of the duties of the contract.​

An intentional failure to comply with the terms of a contract is not a breach.​

An intended beneficiary can sue directly to enforce a promisor's promise.​

An assignee has a right to demand performance from the obligor.​

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty​

Marco and Ned enter into a contract for the sale of Marco's apartment for which Ned agrees to pay him $100,000. Marco cannot prohibit Ned from transferring his right to the ownership of the apartment because such a prohibition is​

​Anything less than complete performance is a material breach of contract.

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations​

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is​

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

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform​

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit​

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at State. This requirement is​

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves​

Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is​

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Rights to receive funds can be assigned.

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because

The most common way to discharge contractual duties is by breach of contract.

No contract can prohibit delegation of the duties of the contract.

An intentional failure to comply with the terms of a contract is not a breach.

An intended beneficiary can sue directly to enforce a promisor's promise.

An assignee has a right to demand performance from the obligor.

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Marco and Ned enter into a contract for the sale of Marco's apartment for which Ned agrees to pay him $100,000. Marco cannot prohibit Ned from transferring his right to the ownership of the apartment because such a prohibition is

Anything less than complete performance is a material breach of contract.

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is

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

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at State. This requirement is

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

Home Built LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is

Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya's right to the $1,000 is then