Question 1

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

Accepted Answer

A)  ​an intended beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​a delegatee. 
D)  ​an assignee.

Question 2

Fact Pattern 17-1
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies.
-Refer to Fact Pattern 17-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is

Accepted Answer

A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an incidental beneficiary. 
D)  ​an intended beneficiary.

Question 3

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

Accepted Answer

A)  ​a delegatee. 
B)  ​an assignee. 
C)  ​an obligee. 
D)  ​a delegator.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

Accepted Answer

A)  ​a right to receive payment. 
B)  ​a right to Ben's services. 
C)  ​rights under Ivy's insurance policy against Ben's failing to perform. 
D)  ​a right whose transfer is otherwise expressly prohibited by statute.

Question 6

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is

Accepted Answer

A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​alienation.

Question 7

Brock enters into a contract with Casey's Coin-op Laundry to move a suite of dryers from one of Casey's locations to another. Brock subsequently transfers this duty to Darin. Darin is

Accepted Answer

A)  ​a delegatee. 
B)  ​an obligee. 
C)  ​a third-party beneficiary. 
D)  ​an assignee.

Question 8

A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits

Accepted Answer

A)  ​any assignment. 
B)  ​no assignment. 
C)  ​only an assignment of contract rights to personal services. 
D)  ​only an assignment that would change the obligor's risk.

Question 9

Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is

Accepted Answer

A)  ​a delegator. 
B)  ​a delegatee. 
C)  ​an assignor. 
D)  ​an assignee.

Question 10

Contract duties are not assigned-they are delegated.

Accepted Answer

A) True 
 B)False

Question 11

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Accepted Answer

A)  ​under any circumstances. 
B)  ​without continuing to be potentially liable. 
C)  ​without Miles's consent. 
D)  ​without paying Miles at least one monthly fee.

Question 12

​Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

Accepted Answer

A)  ​absolved of any liability under the contract. 
B)  ​liable to Joy for breach of contract. 
C)  ​liable to Joy if Leza does not perform. 
D)  ​liable to Leza for inducing a prohibited contract.

Question 13

Steel, Inc., and Transport Company enter into a contract. UniOil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of

Accepted Answer

A)  ​assignment. 
B)  ​delegation. 
C)  ​privity. 
D)  ​alienation.

Question 14

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 15

In an assignment, the party assigning the rights to a third party is the assignee.

Accepted Answer

A) True 
 B)False

Question 16

​Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Accepted Answer

A)  ​a delegatee. 
B)  ​an intended beneficiary. 
C)  ​an incidental beneficiary. 
D)  ​an assignor.

Question 17

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because

Accepted Answer

A)  ​Retail did not consent to the assignment. 
B)  ​Retail did not receive adequate consideration for the assignment. 
C)  ​the assignment will materially increase the risk of nonperformance. 
D)  ​Tough Road was not an original party to the deal.

Question 18

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to the ownership of the apartment because such a prohibition is

Accepted Answer

A)  ​against public policy. 
B)  ​immoral. 
C)  ​unconscionable. 
D)  ​a crime.

Question 19

An "assignment of all rights" creates an assignment of rights and a delegation of duties.

Accepted Answer

A) True 
 B)False

Question 20

Rights to receive funds can be assigned.

Accepted Answer

A) True 
 B)False

Exam 17: Third Party Rights

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

Fact Pattern 17-1 Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. -Refer to Fact Pattern 17-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

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

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is

Brock enters into a contract with Casey's Coin-op Laundry to move a suite of dryers from one of Casey's locations to another. Brock subsequently transfers this duty to Darin. Darin is

A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits

Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is

Contract duties are not assigned-they are delegated.

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

Steel, Inc., and Transport Company enter into a contract. UniOil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of

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

In an assignment, the party assigning the rights to a third party is the assignee.

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to the ownership of the apartment because such a prohibition is

An "assignment of all rights" creates an assignment of rights and a delegation of duties.

Rights to receive funds can be assigned.

Exam 17: Third Party Rights

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

Fact Pattern 17-1 Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. -Refer to Fact Pattern 17-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

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

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is

Brock enters into a contract with Casey's Coin-op Laundry to move a suite of dryers from one of Casey's locations to another. Brock subsequently transfers this duty to Darin. Darin is

A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits

Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is

Contract duties are not assigned-they are delegated.

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

​Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

Steel, Inc., and Transport Company enter into a contract. UniOil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of

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

In an assignment, the party assigning the rights to a third party is the assignee.

​Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to the ownership of the apartment because such a prohibition is

An "assignment of all rights" creates an assignment of rights and a delegation of duties.

Rights to receive funds can be assigned.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is