Question 1

Luis contracts with Molly to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Luis's duty to Molly, if any?

Accepted Answer

A)   Luis has no duty to Molly so long as she did not expressly object to the delegation.
B)   Luis has no duty to Molly regardless of whether she objected to the delegation.
C)   Luis continues to be bound to Molly to see that her car gets washed.
D)   Luis continues to be bound to Molly to see that her car gets washed only if the contract expressly prohibited delegation.
E)   Luis continues to be bound to Molly to see that her car gets washed unless he already paid Paul for the job.

Question 2

Parties not in ________ usually do not have rights to a contract.

Accepted Answer

A)   Acknowledged contract
B)   Diverse contract
C)   Privity of contract
D)   Close contract
E)   Privileged contract

Question 3

Although an intended beneficiary can enforce rights under a contract, they cannot do so until the right has ________.

Accepted Answer

A)   gelled
B)   completed
C)   revamped
D)   vested
E)   finished

Question 4

A donee beneficiary is a type of incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding oral assignments?

Accepted Answer

A)   In some cases, assignments may be made orally.
B)   Assignments, regardless of the terms, are not covered by the statute of frauds.
C)   The UCC requires that assignments be in writing when the amount being assigned is greater than $1,000.
D)   The UCC requires that assignments be in writing when the amount being assigned in greater than $1,500.
E)   The UCC requires that assignments be in writing when the amount being assigned is greater than $2,000.

Question 6

Which of the following is true of an attempt to assign the rights to payment?

Accepted Answer

A)   The rights to payment can never be assigned.
B)   The rights to payment can always be assigned.
C)   The rights to payment can only be assigned if a contract is personal in nature.
D)   The rights to payment can never be assigned if a contract is personal in nature.
E)   The rights to payments can only be assigned if a contract is created under the statute of frauds.

Question 7

Jorge and Delinda decide to contract for bottled water. Delinda assigns her right to receive the proceeds of the bottled water contract to her friend Melody. When does an assignment become effective?

Accepted Answer

A)   It would not be effective as rights to payments cannot be assigned.
B)   When Melody receives notice she is receiving the payment rights.
C)   Immediately upon the assignment.
D)   After a reasonable delay to allow time for the obligor to object.
E)   Five business days after the assignment being made.

Question 8

Most countries do not grant third-party rights to contracts.

Accepted Answer

A) True 
 B)False

Question 9

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Accepted Answer

A)   Whether performance of the contract is done directly to the third party and whether the contract directly states that the third party is the benefiting party, but not the third party's ability to control the specifics of performance of the contract.
B)   The third party's ability to control the specifics of performance of the contract, but not whether performance of the contract is done directly to the third party or whether the contract directly states that the third party is the benefiting party.
C)   Whether the contract directly states that the third party is the benefiting party, but not the third party's ability to control the specifics of performance of the contract or whether performance of the contract is done directly to the third party.
D)   Whether performance of the contract is done directly to the third party and the third party's ability to control the specifics of performance of the contract, but not whether the contract directly states that the third party is the benefiting party.
E)   Whether performance of the contract is done directly to the third party, the third party's ability to control the specifics of performance of the contract, and whether the contract directly states that the third party is the benefiting party.

Question 10

Kelvin contracts with Anddy's Office Supplies to clean his store nightly. Kelvin gets really busy and transfers his duty to Xavier to clean the store. Kelvin is a ________

Accepted Answer

A)   delegatee
B)   delegator
C)   assignor
D)   assignee
E)   transferor

Question 11

[Third-Party Woes] Jaya owed Bobby $40 for a book she purchased from him. Jaya mowed Laura's yard for $40 and made an agreement with Laura that Laura would pay Bobby for the book. Bobby was not aware of the assignment. Laura did not pay anyone. Jaya also mowed Ken's yard for $40. She agreed with Ken that Ken would give the payment to Bianca, representing Jaya's birthday present to Bianca. Ken later refuses to do so, saying that promises to give gifts are not enforceable. Ken then moved out of town. Jaya told both Bobby and Bianca that she was broke and that they would have to recover any amounts due directly from Laura and Ken, respectively. Bianca was very unhappy because she wanted to buy a new pair of sandals with the money.
-Which of the following would be the likely result if Bianca sues Jaya and Ken for the $40 promised to her for her birthday?

Accepted Answer

A)   Bianca will win as to both because they are equally liable to provide the funds.
B)   Bianca will win as to Ken, but will win as to Jaya only if she can prove that Ken is insolvent and unable to pay.
C)   Bianca will win as to Ken, but will win as to Jaya only if she can prove that she cannot find Ken in order to serve process on him.
D)   Bianca will lose as to both Jaya and Ken because promises to give gifts are unenforceable in the absence of reliance.
E)   Bianca will lose as to Jaya because Jaya had no obligation to go through with the gift, but she will win as to Ken.

Question 12

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Matteo paints the picture of a ship, but assigns the right to collect payment of the $100 to Felipe. Is Matteo's assignment legally valid?

Accepted Answer

A)   Yes, because the right to payment can always be assigned.
B)   Yes, because the contract was not one for personal services.
C)   No, because the right to payment can never be assigned.
D)   No, because the contract was one for personal service.
E)   No, because it would increase the burden on Sally to pay Felipe instead of Matteo.

Question 13

What is one reason why the right to assign monetary payments cannot be denied?

Accepted Answer

A)   Because denial of the right to assign monetary payments would be a violation of the statute of frauds.
B)   Because denial of the right to assign monetary payments would be a violation of the UCC.
C)   Because companies often transfer rights to payments in the regular course of business.
D)   Because the doctrine of promissory estoppel guarantees the right to assign monetary payments.
E)   Because privity of contract gives each party the right to assign monetary payments.

Question 14

Which of the following is NOT an example of contractual rights that cannot be assigned?

Accepted Answer

A)   Rights that are personal in nature.
B)   Rights whose assignment would increase the obligor's risk or duties.
C)   Rights whose assignment is prohibited by contract.
D)   Rights whose assignment is prohibited by public policy.
E)   Rights to recover damages after a breach of contract.

Question 15

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Accepted Answer

A)   Valid
B)   Recognized
C)   Substantial
D)   Familial
E)   Marital

Question 16

What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

Accepted Answer

A)   The court will always prohibit assignment.
B)   The court will never prohibit assignment.
C)   The court will treat the assignment as a breach of contract.
D)   The court will always allow assignment unless it is against public policy.
E)   The court will refer to the statute of frauds to determine the effectiveness of the assignment.

Question 17

Harold and Lloyd are in a contract to buy and sell machinery. Lloyd assigns his rights to Barbara without telling Harold. Harold finds out and objects. Which of the following is true regarding notice of an assignment in this case?

Accepted Answer

A)   Harold is correct, notice is required for an assignment to be valid.
B)   Assignments are not effective until notice is given so Harold would need to be notified before Lloyd could legally assign his right.
C)   Notice is not required for a valid assignment, but is a good idea and Lloyd would be wise to notify Harold.
D)   Harold is correct because notice of assignment must be provided in writing for an assignment to be valid.
E)   Harold is correct because notice must be provided either in writing or orally for an assignment to be valid.

Question 18

Simone assigned her rights under a contract to Juan. Forgetting that she took this action, she later assigns her rights under the contract to Kai. Both Juan and Kai try to claim the right to the contract. The state gives Juan the rights. Which rule did the state apply?

Accepted Answer

A)   The English rule
B)   The last-assignment-in-time rule
C)   The first-assignment-in-time rule
D)   The French rule
E)   The American rule

Question 19

Carrie and Clayton enter into a contract. Carrie transfers her rights under the contract to Tamir. What is this transfer of rights called?

Accepted Answer

A)   Assignment
B)   Referral
C)   Disgorgement
D)   Privity
E)   Transfer

Question 20

When can an assignee decline an assignment?

Accepted Answer

A)   If he declines in a timely fashion and has not agreed to the assignment.
B)   If he declines within the time limit set by the UCC.
C)   If he declines within the time limit set by the statute of frauds.
D)   Only if the assignment would impose additional obligations.
E)   Never.

Exam 19: Third-Party Rights to Contracts

What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

Correct Answer
verified

What is one reason why the right to assign monetary payments cannot be denied?

Correct Answer
verified

Simone assigned her rights under a contract to Juan. Forgetting that she took this action, she later assigns her rights under the contract to Kai. Both Juan and Kai try to claim the right to the contract. The state gives Juan the rights. Which rule did the state apply?

Correct Answer
verified

Parties not in ________ usually do not have rights to a contract.

Correct Answer
verified

Although an intended beneficiary can enforce rights under a contract, they cannot do so until the right has ________.

Correct Answer
verified

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Correct Answer
verified

Harold and Lloyd are in a contract to buy and sell machinery. Lloyd assigns his rights to Barbara without telling Harold. Harold finds out and objects. Which of the following is true regarding notice of an assignment in this case?

Correct Answer
verified

A donee beneficiary is a type of incidental beneficiary.

Correct Answer
verified

Correct Answer
verified

Kelvin contracts with Anddy's Office Supplies to clean his store nightly. Kelvin gets really busy and transfers his duty to Xavier to clean the store. Kelvin is a ________

Correct Answer
verified

When can an assignee decline an assignment?

Correct Answer
verified

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Matteo paints the picture of a ship, but assigns the right to collect payment of the $100 to Felipe. Is Matteo's assignment legally valid?

Correct Answer
verified

Carrie and Clayton enter into a contract. Carrie transfers her rights under the contract to Tamir. What is this transfer of rights called?

Correct Answer
verified

Which of the following is true regarding oral assignments?

Correct Answer
verified

Which of the following is true of an attempt to assign the rights to payment?

Correct Answer
verified

Most countries do not grant third-party rights to contracts.

Correct Answer
verified

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Correct Answer
verified

Jorge and Delinda decide to contract for bottled water. Delinda assigns her right to receive the proceeds of the bottled water contract to her friend Melody. When does an assignment become effective?

Correct Answer
verified

Which of the following is NOT an example of contractual rights that cannot be assigned?

Correct Answer
verified

Luis contracts with Molly to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Luis's duty to Molly, if any?

Correct Answer
verified

Exam 19: Third-Party Rights to Contracts

What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

Correct AnswerverifiedShow Answer

What is one reason why the right to assign monetary payments cannot be denied?

Correct AnswerverifiedShow Answer

Simone assigned her rights under a contract to Juan. Forgetting that she took this action, she later assigns her rights under the contract to Kai. Both Juan and Kai try to claim the right to the contract. The state gives Juan the rights. Which rule did the state apply?

Correct AnswerverifiedShow Answer

Parties not in ________ usually do not have rights to a contract.

Correct AnswerverifiedShow Answer

Although an intended beneficiary can enforce rights under a contract, they cannot do so until the right has ________.

Correct AnswerverifiedShow Answer

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Correct AnswerverifiedShow Answer

Harold and Lloyd are in a contract to buy and sell machinery. Lloyd assigns his rights to Barbara without telling Harold. Harold finds out and objects. Which of the following is true regarding notice of an assignment in this case?

Correct AnswerverifiedShow Answer

A donee beneficiary is a type of incidental beneficiary.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kelvin contracts with Anddy's Office Supplies to clean his store nightly. Kelvin gets really busy and transfers his duty to Xavier to clean the store. Kelvin is a ________

Correct AnswerverifiedShow Answer

When can an assignee decline an assignment?

Correct AnswerverifiedShow Answer

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Matteo paints the picture of a ship, but assigns the right to collect payment of the $100 to Felipe. Is Matteo's assignment legally valid?

Correct AnswerverifiedShow Answer

Carrie and Clayton enter into a contract. Carrie transfers her rights under the contract to Tamir. What is this transfer of rights called?

Correct AnswerverifiedShow Answer

Which of the following is true regarding oral assignments?

Correct AnswerverifiedShow Answer

Which of the following is true of an attempt to assign the rights to payment?

Correct AnswerverifiedShow Answer

Most countries do not grant third-party rights to contracts.

Correct AnswerverifiedShow Answer

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Correct AnswerverifiedShow Answer

Jorge and Delinda decide to contract for bottled water. Delinda assigns her right to receive the proceeds of the bottled water contract to her friend Melody. When does an assignment become effective?

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of contractual rights that cannot be assigned?

Correct AnswerverifiedShow Answer

Luis contracts with Molly to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Luis's duty to Molly, if any?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified