Question 1

Jean promises to paint Katy's house in exchange for Lila's promise to plant trees on Jean's property.This is

Accepted Answer

A)  a delegation.
B)  an assignment.
C)  a third party beneficiary contract.
D)  none of the choices. C

Question 2

Greensward Landscaping Company enters into a contract with Kent to landscape Hillview Country Club's golf course,using Intown Nursery to supply trees and shrubbery.Jonas owns a lot next to Hillview's course that will benefit from the improved landscaping.The landscaping is a gift from Kent,a wealthy club member,to Hillview.What type of beneficiary is Hillview What type of beneficiary is Jonas What type of beneficiary is Intown Nursery If Greensward refuses to do the job,who can enforce the contract against it

Accepted Answer

Hillview is an intended,donee beneficiary.Greensward and Kent entered into the contract with the express purpose of benefiting Hillview.Jonas is an incidental beneficiary.Jonas's property value will go up once Hillview's property is improved,but that is not the intent of the parties to the contract.Intown Nursery is also an incidental beneficiary,because it will also benefit from the contract between Greensward and Kent,but that is not the intent of either contracting party.If Greensward subsequently refuses to do the job,Kent or Hillview can enforce the contract against the landscaper.In Hillview's situation,when a contract is made for the express purpose of giving a gift to a third party,the third party (Hillview,the donee beneficiary)can sue the promisor (Greensward)directly to enforce the promise.Kent can enforce the contract,of course,because he is a party to it.

Question 3

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Accepted Answer

A) True 
 B)False  True

Question 4

No contract can prohibit delegation of the duties of the contract.

Accepted Answer

A) True 
 B)False

Question 5

Animal Feed Corporation and Beneficial Trucking,Inc.,enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay.Due to schedule conflicts,Beneficial contacts Crop Transport Company,to which Beneficial "assigns all rights under the contract." This transfer is

Accepted Answer

A)  an assignment and a delegation.
B)  an alienation and a negotiation.
C)  an obligation and a cancelation.
D)  prohibited.

Question 6

Illya owes Jenny $1,000.In a separate deal,Kasey owes Illya $1,000.Illya unconditionally assigns his rights in the deal with Kasey to Jenny.Illya's right to the $1,000 is then

Accepted Answer

A)  unchanged.
B)  extinguished.
C)  incidental.
D)  assigned to a court.

Question 7

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 8

Intended beneficiaries can sue to enforce a contract.

Accepted Answer

A) True 
 B)False

Question 9

Fact Pattern 17-B1 (Questions B15-B18 apply)
Able Contractors,Inc.,enters into a contract with Beau to repair,rebuild,and remodel Coastal Marina & Boardwalk,using products from Delta Lumber & Marine.Eatwell Café is next to Coastal Marina.
-Refer to Fact Pattern 17-B1.Halfway through the project,Able Contractors refuses to finish the job.The contract can be enforced against Able Contractors by

Accepted Answer

A)  Beau only.
B)  Beau or Coastal Marina only.
C)  Beau,Coastal Marina,or Delta Lumber only.
D)  Beau,Coastal Marina,Delta Lumber,or Eatwell Café.

Question 10

A valid delegation of duties relieves the delegator of obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 11

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Orchid and Peony enter into a contract for the sale of Orchid's textbook at the end of the fall semester for which Peony agrees to pay Orchid $75.Peony wants to transfer her right to payment for the book to Queenie.This transfer

Accepted Answer

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

Question 14

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Accepted Answer

A) True 
 B)False

Question 15

Vested is the condition in which rights have taken effect and cannot be taken away.

Accepted Answer

A) True 
 B)False

Question 16

Julia,a world-famous chef,signs a contract to give lessons in French cooking to Kyle.Julia wants to transfer her duties under the contract to Leila,a short-order cook at Mom's Café.The transfer is

Accepted Answer

A)  valid because the performance required is of a nonpersonal nature.
B)  valid if Leila is a highly regarded short-order cook.
C)  not valid because performance depends on Julia's personal skills.
D)  not valid if Kyle does not hold Leila in high regard.

Question 17

A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor.

Accepted Answer

A) True 
 B)False

Question 18

Without exception,any duty can be delegated.

Accepted Answer

A) True 
 B)False

Question 19

In an assignment,the party receiving the rights is the assignee.

Accepted Answer

A) True 
 B)False

Question 20

A life insurance contract involves an intended beneficiary.

Accepted Answer

A) True 
 B)False

Exam 17: Third Party Rights

Jean promises to paint Katy's house in exchange for Lila's promise to plant trees on Jean's property.This is

An assignee's rights are subject to the defenses that the obligor has against the assignor.

No contract can prohibit delegation of the duties of the contract.

Illya owes Jenny $1,000.In a separate deal,Kasey owes Illya $1,000.Illya unconditionally assigns his rights in the deal with Kasey to Jenny.Illya's right to the $1,000 is then

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

Intended beneficiaries can sue to enforce a contract.

A valid delegation of duties relieves the delegator of obligations under the contract.

Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.

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

Orchid and Peony enter into a contract for the sale of Orchid's textbook at the end of the fall semester for which Peony agrees to pay Orchid $75.Peony wants to transfer her right to payment for the book to Queenie.This transfer

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Vested is the condition in which rights have taken effect and cannot be taken away.

Julia,a world-famous chef,signs a contract to give lessons in French cooking to Kyle.Julia wants to transfer her duties under the contract to Leila,a short-order cook at Mom's Café.The transfer is

A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor.

Without exception,any duty can be delegated.

In an assignment,the party receiving the rights is the assignee.

A life insurance contract involves an intended beneficiary.