Question 1

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him.This is

Accepted Answer

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

Question 2

The vesting of contractual rights in a third party terminates the right of the original parties to change the contract.

Accepted Answer

A) True 
 B)False

Question 3

Any beneficiary who is not deemed an intended beneficiary is considered incidental.

Accepted Answer

A) True 
 B)False

Question 4

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 legiti?mately refuse to pay Rapid? Explain.

Accepted Answer

The answer of Pam borrows $5,000 from Quality Auto Sales...

Question 5

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.

Question 6

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.

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) in breach of the contract with Joy. 
C) liable to Joy if Leza does not perform. 
D) liable to Leza for inducing a prohibited contract.

Question 8

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez.In most states,this transfer

Accepted Answer

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

Question 9

When rights under a contract are assigned unconditionally,the rights of the assignor are extinguished.

Accepted Answer

A) True 
 B)False

Question 10

Floyd and Gert enter into a contract by which Floyd promises to deliver fer?tilizer 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.

Question 11

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.

Question 12

When the parties to a contract agree that its performance should directly benefit a third person,the third person is an intended third party beneficiary.

Accepted Answer

A) True 
 B)False

Question 13

Peri,a world famous musician and composer,agrees to give ten piano les?sons to Quinn in exchange for $1,000.Peri's attempt to transfer her contract duties to Roth,an in?experienced pianist,will probably be

Accepted Answer

A) permitted because contracts may be freely delegated. 
B) permitted because the contract is concerned with music lessons. 
C) prohibited because contracts may not be freely delegated. 
D) prohibited because Peri and Roth have very different skill levels.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Nick contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Nick and Phoenix the right to modify its terms.Rural Cooperative's right to payment is

Accepted Answer

A) not affected by the reservation. 
B) subject to any change that Nick and Phoenix make. 
C) limited only if Rural Cooperative agrees to any changes. 
D) terminated by the reservation.

Question 16

Alienation is a transfer of the ownership of land.

Accepted Answer

A) True 
 B)False

Question 17

Evergreen Landscapers,Inc.,owes Friendly Finance Company $5,000.Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.Under the contract,Suburban promises to pay Friendly Finance the amount that will be due Evergreen until Evergreen's debt to Friendly Finance is paid.Evergreen performs as promised,but Suburban does not pay Friendly Finance.Can Friendly Finance succeed in a suit against Suburban? Why or why not?

Accepted Answer

The answer of Evergreen Landscapers,Inc.,owes Friendly Finance Company $5,000.Evergreen enters...

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

The person to whom rights in a contract are assigned is the assignor.

Accepted Answer

A) True 
 B)False

Question 20

Oral assignments are prohibited.

Accepted Answer

A) True 
 B)False

Exam 16: Third Party Rights

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him.This is

The vesting of contractual rights in a third party terminates the right of the original parties to change the contract.

Any beneficiary who is not deemed an intended beneficiary is considered incidental.

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

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

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez.In most states,this transfer

When rights under a contract are assigned unconditionally,the rights of the assignor are extinguished.

Floyd and Gert enter into a contract by which Floyd promises to deliver fer?tilizer to Gert.Floyd subsequently transfers this duty to Hazel.Floyd 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

When the parties to a contract agree that its performance should directly benefit a third person,the third person is an intended third party beneficiary.

Peri,a world famous musician and composer,agrees to give ten piano les?sons to Quinn in exchange for $1,000.Peri's attempt to transfer her contract duties to Roth,an in?experienced pianist,will probably be

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

Nick contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Nick and Phoenix the right to modify its terms.Rural Cooperative's right to payment is

Alienation is a transfer of the ownership of land.

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

The person to whom rights in a contract are assigned is the assignor.

Oral assignments are prohibited.