Question 1

Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:

Accepted Answer

A)  is still liable under the contract. 
B)  has no further liability under the contract. 
C)  creates a novation. 
D)  cannot be sued by the assignee for nonperformance. 
A)  is still liable under the contract. 
B)  has no further liability under the contract. 
C)  creates a novation. 
D)  cannot be sued by the assignee for nonperformance.

Question 2

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees.

Accepted Answer

A) True 
 B)False

Question 3

Nick,a builder,contracts with the city of Chicago to build a new convention center.Jack,a hotel owner,stands to benefit once the convention center is built.Jack decides to sue Nick if Nick backs out of the contract.Which of the following statements is true of this scenario?

Accepted Answer

A)  Jack cannot sue Nick because he is an incidental beneficiary. 
B)  Jack can sue Nick because he is a donee beneficiary. 
C)  Jack can sue Nick because Jack is a citizen of Chicago. 
D)  Jack cannot sue Nick because he is a creditor beneficiary. 
A)  Jack cannot sue Nick because he is an incidental beneficiary. 
B)  Jack can sue Nick because he is a donee beneficiary. 
C)  Jack can sue Nick because Jack is a citizen of Chicago. 
D)  Jack cannot sue Nick because he is a creditor beneficiary.

Question 4

A promisor who delegates duties is _____ if the party to whom the duties were delegated fails to satisfactorily perform them.

Accepted Answer

A)  liable to the promisee 
B)  not liable to the promisee 
C)  liable for novation 
D)  liable to the creditor beneficiary 
A)  liable to the promisee 
B)  not liable to the promisee 
C)  liable for novation 
D)  liable to the creditor beneficiary

Question 5

For an assigned claim to be valid,_____.

Accepted Answer

A)  the assignor need not have the capacity to contract 
B)  the contract must not be voidable for any other reason known to the assignor 
C)  the contract must have been discharged once prior to the assignment 
D)  the assignee must have a good title to the rights assigned 
A)  the assignor need not have the capacity to contract 
B)  the contract must not be voidable for any other reason known to the assignor 
C)  the contract must have been discharged once prior to the assignment 
D)  the assignee must have a good title to the rights assigned

Question 6

Ronny contracted Smiths to supply a dress for his niece,Lucie,on her birthday.Since the dress was intended for Lucie,Ronny cannot modify the contract without her consent.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following contracts can generally be assigned in all states in the U.S.?

Accepted Answer

A)  Assignment of future wages 
B)  Employment contracts 
C)  Contracts promising to deliver goods 
D)  Contracts involving personal rights 
A)  Assignment of future wages 
B)  Employment contracts 
C)  Contracts promising to deliver goods 
D)  Contracts involving personal rights

Question 8

Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?

Accepted Answer

A)  To protect the goodwill of the business 
B)  To protect the employees from losing their jobs 
C)  To protect the interest of the public 
D)  To protect wage earners from unwisely impoverishing themselves 
A)  To protect the goodwill of the business 
B)  To protect the employees from losing their jobs 
C)  To protect the interest of the public 
D)  To protect wage earners from unwisely impoverishing themselves

Question 9

Rocky was voted the most valuable player of his university's basketball team.Rocky:

Accepted Answer

A)  can delegate his duties to another player. 
B)  cannot delegate his duties due to public policy. 
C)  cannot delegate his duties since they involve his personal skill. 
D)  can assign his duties to another player. 
A)  can delegate his duties to another player. 
B)  cannot delegate his duties due to public policy. 
C)  cannot delegate his duties since they involve his personal skill. 
D)  can assign his duties to another player.

Question 10

Which of the following is an implied guarantee when an assignor is paid for making an assignment?

Accepted Answer

A)  The promisor himself or herself does not have the capacity to contract. 
B)  The assignor has good title to the rights assigned. 
C)  The contract has been discharged two months prior to assignment. 
D)  Any oral statement representing the claim is genuine. 
A)  The promisor himself or herself does not have the capacity to contract. 
B)  The assignor has good title to the rights assigned. 
C)  The contract has been discharged two months prior to assignment. 
D)  Any oral statement representing the claim is genuine.

Question 11

Which of the following statements is true of delegation of duties?

Accepted Answer

A)  A promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them. 
B)  If the duty to be performed could be performed fully by many different persons, it is delegable. 
C)  All duties are delegable, like assignments. 
D)  If performance depends on the personal skill, it can be delegated. 
A)  A promisor who delegates duties is not liable to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them. 
B)  If the duty to be performed could be performed fully by many different persons, it is delegable. 
C)  All duties are delegable, like assignments. 
D)  If performance depends on the personal skill, it can be delegated.

Question 12

Assignments of future wages are not effective because:

Accepted Answer

A)  they involve personal relationships. 
B)  they are contrary to public policy. 
C)  they materially alter the duties of the promisor. 
D)  they involve personal rights. 
A)  they involve personal relationships. 
B)  they are contrary to public policy. 
C)  they materially alter the duties of the promisor. 
D)  they involve personal rights.

Question 13

If a third party only incidentally benefits from a contract and was not an intended beneficiary,he or she is an incidental beneficiary and cannot enforce it.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true of assignors?

Accepted Answer

A)  An assignor who is paid for making an assignment is not liable to assignees for implied guarantees. 
B)  An assignor who wrongfully assigns the same claim more than once is not liable to an assignee as the assignee is later held to have acquired rights against the promisor. 
C)  An assignor does not impliedly warrant the solvency of a promisor. 
D)  An assignor who accepts performance from the promisor after the assignment does not hold any benefits he or she receives as trustee for his or her assignee. 
A)  An assignor who is paid for making an assignment is not liable to assignees for implied guarantees. 
B)  An assignor who wrongfully assigns the same claim more than once is not liable to an assignee as the assignee is later held to have acquired rights against the promisor. 
C)  An assignor does not impliedly warrant the solvency of a promisor. 
D)  An assignor who accepts performance from the promisor after the assignment does not hold any benefits he or she receives as trustee for his or her assignee.

Question 15

Only certain specified individuals,and not members of the general public,can be incidental beneficiaries of contracts.

Accepted Answer

A) True 
 B)False

Question 16

A promisor who renders performance to the assignor without notice of the assignment bears liability under the contract.

Accepted Answer

A) True 
 B)False

Question 17

When a promisor appoints another person to perform his duties under a contract,_____.

Accepted Answer

A)  it is called an assignment 
B)  it is called a delegation 
C)  it creates an incidental beneficiary 
D)  it creates a donee beneficiary 
A)  it is called an assignment 
B)  it is called a delegation 
C)  it creates an incidental beneficiary 
D)  it creates a donee beneficiary

Question 18

Incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of employment contracts?

Accepted Answer

A)  They are generally assignable. 
B)  They are contrary to public policies. 
C)  They involve personal rights. 
D)  They involve the transfer of duties. 
A)  They are generally assignable. 
B)  They are contrary to public policies. 
C)  They involve personal rights. 
D)  They involve the transfer of duties.

Question 20

A donee beneficiary:

Accepted Answer

A)  is a third-party beneficiary to whom a gift of the contracted performance is given. 
B)  is a third-party beneficiary who is no longer a part of an agreement. 
C)  is a third-party beneficiary who incidentally benefits from a contract. 
D)  is a third party beneficiary who cannot recover the value of the promised performance. 
A)  is a third-party beneficiary to whom a gift of the contracted performance is given. 
B)  is a third-party beneficiary who is no longer a part of an agreement. 
C)  is a third-party beneficiary who incidentally benefits from a contract. 
D)  is a third party beneficiary who cannot recover the value of the promised performance.

Exam 17: Third Parties Contract Rights

Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees.

Nick,a builder,contracts with the city of Chicago to build a new convention center.Jack,a hotel owner,stands to benefit once the convention center is built.Jack decides to sue Nick if Nick backs out of the contract.Which of the following statements is true of this scenario?

A promisor who delegates duties is _____ if the party to whom the duties were delegated fails to satisfactorily perform them.

For an assigned claim to be valid,_____.

Ronny contracted Smiths to supply a dress for his niece,Lucie,on her birthday.Since the dress was intended for Lucie,Ronny cannot modify the contract without her consent.

Which of the following contracts can generally be assigned in all states in the U.S.?

Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?

Rocky was voted the most valuable player of his university's basketball team.Rocky:

Which of the following is an implied guarantee when an assignor is paid for making an assignment?

Which of the following statements is true of delegation of duties?

Assignments of future wages are not effective because:

If a third party only incidentally benefits from a contract and was not an intended beneficiary,he or she is an incidental beneficiary and cannot enforce it.

Which of the following statements is true of assignors?

Only certain specified individuals,and not members of the general public,can be incidental beneficiaries of contracts.

A promisor who renders performance to the assignor without notice of the assignment bears liability under the contract.

When a promisor appoints another person to perform his duties under a contract,_____.

Incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.

Which of the following is true of employment contracts?

A donee beneficiary:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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