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Exam 17: Third Parties Contract Rights

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Question 1

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An assignor who assigns the contract will be relieved of the duty to perform to the other party on the original contract when:

A) the assignee gives notice to the other party.
B) there has been a novation of the original contract.
C) the assignee contracts to successfully perform the duties.
D) the contract of assignment explicitly states that the assignor is no longer liable to the other party.

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verified

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Question 2

Multiple Choice

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Assignees:

A) cannot enforce any rights of assignor against obligator.
B) cannot be liable for duties impliedly delegated with the assignment.
C) can sue the promisor for nonperformance.
D) can acquire greater rights than the assignor has.

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C

Question 3

Multiple Choice

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Delegations can be prohibited by:

When a promisor appoints another person to perform their duties under a contract:

As a general rule,assignments that do not involve personal relationships or increase the promisor's burden are enforceable.

The creditor beneficiary has rights against the promisee,but not the promisor.

The promisor who delegates duties is ______ to the promisee if the party to whom the duties were delegated fails to satisfactorily perform them.

Notice to the promisor is important to address the issues of:

Assignments of future wages are not effective because:

Assignors who are paid for making an assignment are potentially liable to assignees for certain implied guarantees.

Edward owes Frank $100,payable in six months.Frank,who is leaving the country on work,gives his rights to the payment to Marge for $80.Indicate the true statement about this case.

An underground water main burst in Manhattan and flooded the building where the Acme electric company has an electricity supply substation.A fire resulted and disrupted electric power for four days.This occurred during the biannual "Buyers Week" when merchandisers from around the world were in town to visit fashion showrooms and place orders for future seasons.Some 200 merchandisers brought suit against Acme.Some of the businesses had no direct contractual relationship with Acme.They argued that their lease agreements with their landlords,who were the direct contracting entities with Acme,obligated them to pay a share of the electricity expenses and therefore they could sue under the contracts between the landlords and Acme.Are they correct?

Which of the following statements is true for assignment of contracts?

Unless an assignment agreement clearly indicates a contrary intent,courts today tend to interpret assignments as including a delegation of the assignor's duties.A promise on the part of the assignee to perform these duties:

The transfer of rights and duties under a contract is called an assignment.

Once a donee or creditor beneficiary has accepted the contract,the original parties:

An incidental beneficiary can:

Only specified individuals,and not members of the general public,can be incidental beneficiaries of contracts.

To make a third party a donee beneficiary,the creation of a gift (intended for the third party)of the contracted performance must be the promisee's primary purpose in contracting.

Which of the following contracts can be assigned?