Question 1

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Accepted Answer

A) True 
 B)False  True

Question 2

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

Accepted Answer

A) True 
 B)False  True

Question 3

When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

Accepted Answer

A) True 
 B)False  True

Question 4

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

Accepted Answer

A)   partial assignment
B)   assignment
C)   delegation
D)   novation

Question 5

The obligor need not receive notice for an assignment to be valid.

Accepted Answer

A) True 
 B)False

Question 6

A gratuitous assignment is revocable by the assignor.

Accepted Answer

A) True 
 B)False

Question 7

Elvia has a contract to teach sixth grade at Margena Middle School.She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher.

Accepted Answer

A)   If effective, this would be both an assignment and a delegation.
B)   If the school district agrees to accept Stephanie's services, a novation would occur, which would relieve Elvia of her obligation to the school district.
C)   The duties which Elvia wants to delegate are personal in nature.
D)   All of these are correct.

Question 8

Name four types of contract rights that are non-assignable.

Accepted Answer

The answer of Name four types of contract rights that...

Question 9

Kellie owes a duty to Grant and Kellie delegates the duty to Hank.Hank:

Accepted Answer

A)   is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so.
B)   cannot create contractual rights in Grant.
C)   becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty.
D)   All of these.

Question 10

a.What is a third party beneficiary? 
b.Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary.Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

Accepted Answer

The answer of a.What is a third party beneficiary? 
b.Distinguish...

Question 11

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

Accepted Answer

A) True 
 B)False

Question 12

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Accepted Answer

A) True 
 B)False

Question 13

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Accepted Answer

A) True 
 B)False

Question 14

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

Accepted Answer

A) True 
 B)False

Question 15

A duty may not be delegated if there is an express provision in a contract against delegation.

Accepted Answer

A) True 
 B)False

Question 16

Anita owes Brad $75,000.Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita.If Brad dies prior to delivering the statement to Cal:

Accepted Answer

A)   the signing of the statement makes the assignment irrevocable.
B)   the assignment is terminated upon Brad's death.
C)   the assignment is invalid, because it is gratuitous.
D)   Brad's death has no effect on the assignment.

Question 17

When the rights under a contract are highly personal, they are not assignable.

Accepted Answer

A) True 
 B)False

Question 18

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Accepted Answer

A) True 
 B)False

Question 19

Sean has a right against Tanner and assigns it for value to Megan.Later, Sean gives Tanner a release.Megan:

Accepted Answer

A)   may recover damages from Tanner for breach of an implied warranty.
B)   will be unaffected by Sean's action.
C)   has lost her right and has no remedy.
D)   may recover damages from Sean for breach of an implied warranty.

Question 20

A transfer to a third party of a contractual obligation is known as a(n):

Accepted Answer

A)   assignment of rights.
B)   delegation of duties.
C)   revocability of assignment.
D)   partial assignment.

Exam 16: Third Parties to Contracts

An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

A partial assignment is a transfer of a portion of the contractual rights to one or more assignees.

When a partial assignment is made, the obligor may require all the parties entitled to the promised performance to litigate in one action any issues concerning the contract performance.

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

The obligor need not receive notice for an assignment to be valid.

A gratuitous assignment is revocable by the assignor.

Elvia has a contract to teach sixth grade at Margena Middle School.She decided she could make more money writing a book, so she wants to assign her teaching contract to her friend, Stephanie, who is also a licensed teacher.

Name four types of contract rights that are non-assignable.

Kellie owes a duty to Grant and Kellie delegates the duty to Hank.Hank:

a.What is a third party beneficiary? b.Distinguish between the following types of third party beneficiaries: creditor beneficiary; donee beneficiary; intended beneficiary, incidental beneficiary.Can all third parties that benefit from a contract sue to enforce rights under the contract? Explain.

If a contract explicitly provides that it may be assigned, then rights under it are assignable even if the assignment would change the duty, risk, or burden of performance on the obligor.

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but acquires no new or additional rights.

Article 9 of the UCC makes waiver-of-defense clauses effective against assignees in consumer transactions.

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

A duty may not be delegated if there is an express provision in a contract against delegation.

Anita owes Brad $75,000.Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita.If Brad dies prior to delivering the statement to Cal:

When the rights under a contract are highly personal, they are not assignable.

Assignments that materially increase the risk, duty, or burden on the obligor will nonetheless remain effective and enforceable.

Sean has a right against Tanner and assigns it for value to Megan.Later, Sean gives Tanner a release.Megan:

A transfer to a third party of a contractual obligation is known as a(n) :