Exam 17: Third Party Rights

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Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial "assigns all rights under the contract." This transfer is

(Multiple Choice)

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Question 21

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

(Multiple Choice)

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Question 22

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

(True/False)

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Question 23

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue

(Multiple Choice)

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Question 24

Fact Pattern 17-B1 (Questions B15-B18 apply) Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell Café is next to Coastal Marina. -Refer to Fact Pattern 17-B1. Halfway through the project, Able Contractors refuses to finish the job. The contract can be enforced against Able Contractors by

(Multiple Choice)

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Question 25

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

(True/False)

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Question 26

App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is

(Multiple Choice)

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Question 27

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

(True/False)

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Question 28

Without exception, any duty can be delegated.

(True/False)

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Question 29

It is legally necessary to notify the obligor of any assignment of rights to a third party.

(True/False)

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Question 30

A life insurance contract involves an intended beneficiary.

(True/False)

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Question 31

Intended beneficiaries can sue to enforce a contract.

(True/False)

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Question 32

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

(True/False)

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Question 33

Greensward Landscaping Company enters into a contract with Kent to landscape Hillview Country Club's golf course, using Intown Nursery to supply trees and shrubbery. Jonas owns a lot next to Hillview's course that will benefit from the improved landscaping. The landscaping is a gift from Kent, a wealthy club member, to Hillview. What type of beneficiary is Hillview? What type of beneficiary is Jonas? What type of bene?ficiary is Intown Nursery? If Greensward refuses to do the job, who can en?force the contract against it?

(Essay)

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Question 34

Banks may not assign their loan contracts to other firms.

(True/False)

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Question 35

An assignee's rights are subject to the defenses that the obligor has against the assignor.

(True/False)

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Question 36

Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can modify or rescind their contract without Mai's consent

(Multiple Choice)

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Question 37

Bobbie enters into a contract with Claire, who agrees to paint Bobbie's studio apartment for $500. Claire is the

(Multiple Choice)

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Question 38

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

(True/False)

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Question 39

In most cases, a contract that prohibits its assignment cannot be assigned.

(True/False)

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Question 40

Showing 21 - 40 of 42

Exam 17: Third Party Rights

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

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

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue

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

App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is

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

Without exception, any duty can be delegated.

It is legally necessary to notify the obligor of any assignment of rights to a third party.

A life insurance contract involves an intended beneficiary.

Intended beneficiaries can sue to enforce a contract.

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

Banks may not assign their loan contracts to other firms.

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can modify or rescind their contract without Mai's consent

Bobbie enters into a contract with Claire, who agrees to paint Bobbie's studio apartment for $500. Claire is the

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

In most cases, a contract that prohibits its assignment cannot be assigned.

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