Question 1

A contract can prevent an assignment of a right to receive funds.

Accepted Answer

A) True 
 B)False

Question 2

An assignee's rights are free of the defenses that the obligor has against the assignor.

Accepted Answer

A) True 
 B)False

Question 3

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This is

Accepted Answer

A)  a delegation. 
B)  an assignment. 
C)  a third party incidental beneficiary contract. 
D)  a third party intended beneficiary contract. 
A)  a delegation. 
B)  an assignment. 
C)  a third party incidental beneficiary contract. 
D)  a third party intended beneficiary contract.

Question 4

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty under this contract to Timber Logging Company. Timber is

Accepted Answer

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

Question 5

A donee beneficiary cannot sue a promisor directly for breach of contract.

Accepted Answer

A) True 
 B)False

Question 6

An incidental third party beneficiary can sue directly to enforce the contract.

Accepted Answer

A) True 
 B)False

Question 7

Oral assignments are prohibited.

Accepted Answer

A) True 
 B)False

Question 8

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $200,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer

Accepted Answer

A)  is prohibited. 
B)  may be oral or written. 
C)  must be implied. 
D)  must be in writing. 
A)  is prohibited. 
B)  may be oral or written. 
C)  must be implied. 
D)  must be in writing.

Question 9

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 10

Contract duties cannot be assigned but they can be delegated.

Accepted Answer

A) True 
 B)False

Question 11

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a debt owed by Esther to Gladys. Gladys is

Accepted Answer

A)  a delegatee. 
B)  an intended beneficiary. 
C)  an incidental beneficiary. 
D)  an alien to the contract. 
A)  a delegatee. 
B)  an intended beneficiary. 
C)  an incidental beneficiary. 
D)  an alien to the contract.

Question 12

Pam borrows $5,000 from Quality Auto Sales to buy a car. When Pam does not pay the loan or return the car, Quality wants to transfers the right to the payment to Rapid Collection Agency. Rapid agrees to pay Quality for this right, but for a price that is less than the amount owed. Can Quality transfer this right to Rapid without Pam's consent If so, and Quality committed fraud in the deal with Pam, could Pam legitimately refuse to pay Rapid Explain.

Accepted Answer

Quality can transfer the right to receiv

Question 13

In a bilateral contract, a party who makes a promise that benefits a third party is a promisor.

Accepted Answer

A) True 
 B)False

Question 14

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund. 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 15

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is

Accepted Answer

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

Question 16

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven. This contract may not be assigned if

Accepted Answer

A)  the assignment will significantly change the risk of nonperformance. 
B)  the assignment is expressly prohibited by the terms of the contract. 
C)  the contract is uniquely personal in nature. 
D)  any of the choices. 
A)  the assignment will significantly change the risk of nonperformance. 
B)  the assignment is expressly prohibited by the terms of the contract. 
C)  the contract is uniquely personal in nature. 
D)  any of the choices.

Question 17

An assignment is effective only after notice is given to the obligor.

Accepted Answer

A) True 
 B)False

Question 18

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this duty to Hazel. Floyd is

Accepted Answer

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

Question 19

Alienation is a transfer of the ownership of land.

Accepted Answer

A) True 
 B)False

Question 20

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links. Under an antidelegation clause, their contract can prohibit and prevent the transfer of

Accepted Answer

A)  duties that are personal in nature. 
B)  duties that are impersonal in nature. 
C)  no duties under the contract. 
D)  all duties under the contract. 
A)  duties that are personal in nature. 
B)  duties that are impersonal in nature. 
C)  no duties under the contract. 
D)  all duties under the contract.

Exam 16: Third Party Rights

A contract can prevent an assignment of a right to receive funds.

An assignee's rights are free of the defenses that the obligor has against the assignor.

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This is

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty under this contract to Timber Logging Company. Timber is

A donee beneficiary cannot sue a promisor directly for breach of contract.

An incidental third party beneficiary can sue directly to enforce the contract.

Oral assignments are prohibited.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $200,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Contract duties cannot be assigned but they can be delegated.

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a debt owed by Esther to Gladys. Gladys is

In a bilateral contract, a party who makes a promise that benefits a third party is a promisor.

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund. This is

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven. This contract may not be assigned if

An assignment is effective only after notice is given to the obligor.

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this duty to Hazel. Floyd is

Alienation is a transfer of the ownership of land.

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links. Under an antidelegation clause, their contract can prohibit and prevent the transfer of

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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for Unit Eighet

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