Exam 15: Third-Party Rights and Discharge

Kimlon Informatics has to recover $5000 from a client for its services. The recovery period is 100 days but Kimlon needs the money immediately. It sells the right of collecting money from its client to Quikcollect, a collection agency. Here, Kimlon Informatics is the ________.

A famous actor signs a contract with a movie studio where she agrees to star in a comedy. Which of the following is true of assignment of such a contract?

A legal right that arises out of a breach of contract is ________.

Karen borrows $10,000 from Celeste. Karen is to pay Celeste the principal amount, with 8 percent interest, over the next five years in 60 equal monthly payments. After one year of receiving proper payments from Karen, Celeste assigns this right to receive future payments to Larry. Who has the duty to notify Karen about the assignment?

A(n) ________ is used if the obligor does not want to deal with or render performance to an unknown third party.

Distinguish between conditions and covenants.

Who should provide a notice of assignment to the obligor?

The American rule provides that the first assignment in time prevails, regardless of notice.

Which of the following rights is generally assignable in the United States?

A(n) ________ refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract.

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform?

Which of the following is true in the event an assignee does not provide a notice of assignment to the obligor?

If the assignee fails to provide notice of assignment to the obligor and the obligor continues to render performance to the assignor, the assignee can sue the obligor.

A(n) ________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.

Ellen, who has a good driving record, purchases automobile insurance from an insurance company. Ellen cannot assign her rights to be insured to another driver for which of the following reasons?

A creditor beneficiary refers to an original creditor who becomes a beneficiary under the debtor's new contract with another party.

A(n) ________ occurs when there is a transfer of both rights and duties under a contract.

Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. The doctors say that Mr. Jacob will live for about six months. A day after the will is written, Silvia wishes to transfer her expected inheritance to her son, Jacob Jr. This assignment will be ________.

When is nonperformance by a contractual party excusable?

A legal right that arises out of a breach of contract may be assigned.