Question 1

A transfer of contract rights to a third party is an assignment.

Accepted Answer

A) True 
 B)False

Question 2

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is​

Accepted Answer

A)  ​a mutual agreement to rescind. 
B)  ​an accord and satisfaction. 
C)  ​a novation. 
D)  ​a settlement agreement. 
A)  ​a mutual agreement to rescind. 
B)  ​an accord and satisfaction. 
C)  ​a novation. 
D)  ​a settlement agreement.

Question 3

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony​

Accepted Answer

A)  ​agree to sign a bill of sale. 
B)  ​exchange the car for the $3,000. 
C)  ​sign a receipt. 
D)  ​shake hands and go their separate ways. 
A)  ​agree to sign a bill of sale. 
B)  ​exchange the car for the $3,000. 
C)  ​sign a receipt. 
D)  ​shake hands and go their separate ways.

Question 4

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Accepted Answer

A)  ​any assignment. 
B)  ​no assignment. 
C)  ​only an assignment of contract rights to personal services. 
D)  ​only an assignment that would change the obligor's risk. 
A)  ​any assignment. 
B)  ​no assignment. 
C)  ​only an assignment of contract rights to personal services. 
D)  ​only an assignment that would change the obligor's risk.

Question 5

Orchid and Peony enter into a contract for the sale of Orchid’s textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. This transfer is

Accepted Answer

A) a delegation. 
B) an assignment. 
C) prohibited. 
D) a third-party beneficiary contract. 
A) a delegation. 
B) an assignment. 
C) prohibited. 
D) a third-party beneficiary contract.

Question 6

A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 14-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-1.If Flora dies before the deliveries begin, her contract with Harvesters is

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  suspended. 
A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  suspended.

Question 8

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is​

Accepted Answer

A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​an alienation. 
A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​an alienation.

Question 9

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Accepted Answer

A) True 
 B)False

Question 10

Contracts that are executory on both sides can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 11

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is

Accepted Answer

A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​prohibited. 
A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​prohibited.

Question 12

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 13

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is​

Accepted Answer

A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an obligee. 
D)  ​a delegator. 
A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an obligee. 
D)  ​a delegator.

Question 14

Any breach allows the nonbreaching party to sue for damages.

Accepted Answer

A) True 
 B)False

Question 15

All rights can be assigned with no exceptions.

Accepted Answer

A) True 
 B)False

Question 16

A condition is a qualification in a contract based on a future event that is certain to occur.

Accepted Answer

A) True 
 B)False

Question 17

Quest Resources, Inc., contracts with Ring Communications Corporation (RCC) for RCC to design and build an all-weather communications sys­tem for Quest's field operations. RCC builds the system, but it func­tions effec­tively only in good weather. Is this a breach of the contract? If so, what remedies does Quest have?​

Accepted Answer

Performance far below reasonable expecta

Question 18

Fact Pattern 14-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-1.If bad weather destroys Flora's crops, the obligation to deliver produce to Harvesters is

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended. 
A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended.

Question 19

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

Accepted Answer

A)  ​damages. 
B)  ​nothing more. 
C)  ​to be excused from performance. 
D)  ​suspend performance. 
A)  ​damages. 
B)  ​nothing more. 
C)  ​to be excused from performance. 
D)  ​suspend performance.

Question 20

Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is

Accepted Answer

A) an assignor. 
B) an assignee. 
C) an obligee. 
D) a delegatee. 
A) an assignor. 
B) an assignee. 
C) an obligee. 
D) a delegatee.

Exam 14: Third Party Rights and Discharge

A transfer of contract rights to a third party is an assignment.

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is​

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony​

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Orchid and Peony enter into a contract for the sale of Orchid’s textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. This transfer is

A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.

Fact Pattern 14-1 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 14-1.If Flora dies before the deliveries begin, her contract with Harvesters is

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is​

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Contracts that are executory on both sides can be rescinded by agreement.

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is​

Any breach allows the nonbreaching party to sue for damages.

All rights can be assigned with no exceptions.

A condition is a qualification in a contract based on a future event that is certain to occur.

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is

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Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to