Question 1

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

Accepted Answer

A)  ​a mutual agreement to rescind. 
B)  ​an accord and satisfaction. 
C)  ​a novation. 
D)  ​an alteration of the original contract.

Question 2

Both intended and incidental beneficiaries acquire legal rights in a contract.

Accepted Answer

A) True 
 B)False

Question 3

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​

Accepted Answer

A)  ​no one. 
B)  ​Jake only. 
C)  ​Leon only. 
D)  ​Jake or Leon.

Question 4

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Accepted Answer

A) True 
 B)False

Question 5

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation​

Accepted Answer

A)  ​Dierdre's bank is liable to Contractors Service. 
B)  ​Dierdre is in breach of contract. 
C)  ​the contract is discharged. 
D)  ​the contract is suspended.

Question 6

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of​

Accepted Answer

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

Question 7

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 8

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is​

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended.

Question 9

A novation requires the existence of a previous, valid obligation.

Accepted Answer

A) True 
 B)False

Question 10

A material breach occurs when performance is substantial, but not complete.

Accepted Answer

A) True 
 B)False

Question 11

Fact Pattern 14-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-1.If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended.

Question 12

A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.

Accepted Answer

A) True 
 B)False

Question 13

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment​

Accepted Answer

A)  ​must be given immediately. 
B)  ​must be given within thirty days. 
C)  ​must be given within a reasonable time. 
D)  ​is not required.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A delegation relieves the party making it of the obligation to per­form.

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

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell 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.

Question 18

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 19

Any breach discharges the nonbreaching party from the contract.

Accepted Answer

A) True 
 B)False

Question 20

The assignment of the same contract right to two different parties automatically cancels both assignments.

Accepted Answer

A) True 
 B)False

Exam 14: Third Party Rights and Discharge

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

Both intended and incidental beneficiaries acquire legal rights in a contract.

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

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

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

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

A novation requires the existence of a previous, valid obligation.

A material breach occurs when performance is substantial, but not complete.

A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment

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

A delegation relieves the party making it of the obligation to perform.

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

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is

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

Any breach discharges the nonbreaching party from the contract.

The assignment of the same contract right to two different parties automatically cancels both assignments.

Exam 14: Third Party Rights and Discharge

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

Both intended and incidental beneficiaries acquire legal rights in a contract.

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​

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation​

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of​

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

A novation requires the existence of a previous, valid obligation.

A material breach occurs when performance is substantial, but not complete.

A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment​

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

A delegation relieves the party making it of the obligation to per­form.

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

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is​

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

Any breach discharges the nonbreaching party from the contract.

The assignment of the same contract right to two different parties automatically cancels both assignments.

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

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment

A delegation relieves the party making it of the obligation to perform.

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is