Question 1

A(n)  ________ is a contractual party who agrees to receive something from the other party.

Accepted Answer

A)   Obligor
B)   Obligee
C)   Assignor
D)   Benefactee
E)   BenefactorF) B) and E)
G) A) and D)

Question 2

Jimmy and Penny enter into a contract. Jimmy transfers his rights under the contract to Luis. Jimmy is a(n) :

Accepted Answer

A)   Transferor
B)   Transferee
C)   Relator
D)   Assignor
E)   AssigneeF) A) and B)
G) A) and C)

Question 3

[Painted House] Jamal had a contract to paint Stephanie's house for $800. His contractual obligations included cleaning up any debris. The contract between Jamal and Stephanie did not in any way address assignment. Jamal, who was very busy, assigned the contract to Greg who was interested in making some extra money and had experience painting. Jamal specified that the contract included the duty to paint the house and the right to receive the money. Jamal did not tell Stephanie about the assignment because he did not want any trouble. Greg also did not mention the assignment to Stephanie. In fact, Greg never met Stephanie because he painted her house while she was at work. After Greg did a good job painting the house, Stephanie sent a check to Jamal for $800. Jamal needed the money to pay some bills, so he spent it. He thought he would have money coming in with which to pay Greg, but that did not happen. Greg asked Stephanie for $800 when it was not forthcoming from Jamal. Stephanie refused. Greg said that he was going to sue her. Stephanie called Jamal and told him that he had no right to assign the contract. In addition, there was another problem involving the disposal of debris. Although Greg was a good, competent painter, he forgot and left some old paint cans at Stephanie's house. Stephanie demanded that Jamal come and properly dispose of the paint cans because they could not simply be put in the trash. Jamal refused and told her that she would have to get Greg to dispose of the paint cans because that was his responsibility. Stephanie called Greg who told her that he was busy and that clearing out the paint cans was Jamal's responsibility.
-Which statement is true regarding Jamal's claim that he had no duty to pick up the paint cans?

Accepted Answer

A)   Jamal is correct because he validly delegated that duty to Greg.
B)   Jamal is incorrect because the job was for the performance of a personal service, and he had no right to assign either rights or duties under the contract.
C)   Jamal is incorrect, but only because the job was for under $1,000.
D)   Jamal is correct only because Greg properly painted the house and was, therefore, responsible for ancillary obligations. If Greg had improperly painted the house, Jamal would have still had remaining duties.
E)   Jamal is incorrect because his delegation did not affect his obligation to Stephanie. Normal 0 false false false EN-IN X-NONE X-NONEF) A) and D)
G) B) and E) E

Question 4

If Nadine and Luigi go to court to resolve their contract dispute and their contract has an antiassignment clause, how will the court generally treat the clause?

Accepted Answer

A)   As an invalid clause because the courts do not believe in antiassignment clauses.
B)   As clause against public policy.
C)   As a set of promises.
D)   As an invalid agreement under the statute of frauds.
E)   As an effective clause as long as there is additional compensation paid by one of the parties.F) A) and B)
G) A) and C)

Question 5

Sally and Matteo enter into a contract in which Matteo, a professional painter, agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Sally pays Matteo $100 but he delegates the painting job to his next door neighbor. Is Matteo's delegation legally valid?

Accepted Answer

A)   Yes, because obligations under a contract can always be assigned.
B)   Yes, because the contract was not one for personal services.
C)   No, because obligations under a contract can never be delegated.
D)   No, because the duties under the contract were personal in nature.
E)   No, because it would increase the burden on Sally to pay Felipe instead of Matteo.F) C) and D)
G) A) and D) D

Question 6

List four situations under which contractual rights cannot be assigned.

Accepted Answer

Four situations under which contractual ...

Question 7

List and discuss two reasons why notice of assignment should be given.

Accepted Answer

Notice of assignment should be given bec...

Question 8

The promisee in a third-party beneficiary contract is the party to the contract who ________ in exchange for the promise made to the third-party beneficiary.

Accepted Answer

A)   receives a gift
B)   obligates another party under the contract
C)   owes something to the promisor
D)   owes something to the third-party beneficiary
E)   becomes a new assignorF) B) and D)
G) All of the above

Question 9

The Case Opener involved a lawsuit by fans seeking a refund based on the fact that the Tyson and Holyfield fight was stopped in the third round because Tyson bit off a piece of Holyfield's ear. What was the ruling of the court?

Accepted Answer

A)   The fans were not allowed to recover because they were incidental beneficiaries.
B)   The fans were not allowed to recover because they were donee beneficiaries.
C)   The fans were not allowed to recover because they were assigned donees.
D)   The fans were allowed to recover because they were creditor beneficiaries.
E)   The fans were allowed to recover because they were intended third-party beneficiaries.F) A) and B)
G) A) and C)

Question 10

Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Accepted Answer

A)   A creditor beneficiary must accept assignment of rights, but there is no requirement that a donee beneficiary do so.
B)   A donee beneficiary must accept assignment of rights, but there is no requirement that a creditor beneficiary do so.
C)   An assignee must agree to accept assigned rights, and there is a strict protocol for doing so.
D)   An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.
E)   An assignee may only decline an assignment if a delegation of duties is also involved.F) B) and E)
G) A) and C)

Question 11

In determining whether a person is an incidental or intended beneficiary, which of the following do courts consider?

Accepted Answer

A)   The courts ask if a reasonable person in the position of the party in question would believe the contracting parties intended to benefit the party in question.
B)   The courts ask if it is substantially certain that the contracting parties intended to benefit the party in question.
C)   The courts ask if it can be proven beyond a reasonable doubt that the contracting parties intended to benefit the party in question.
D)   The courts ask if the party in question paid something for the rights.
E)   The courts ask if the party in question paid at least $500 for the rights.F) A) and C)
G) None of the above

Question 12

A[n] ________ beneficiary is a third party who benefits from a contract in which the promisor agrees to give a gift to the third party.

Accepted Answer

A)   Creditor
B)   Donee
C)   Incidental
D)   Promised
E)   AvowedF) A) and C)
G) A) and E)

Question 13

A donee beneficiary may enforce rights under a contract only against the ________.

Accepted Answer

A)   Promisee
B)   Promisor
C)   Obligor
D)   Initial contracting parties
E)   AssigneeF) A) and E)
G) A) and C) B

Question 14

Assignment of a contract that is personal in nature is generally permitted.

Accepted Answer

A) True 
 B)False

Question 15

Quentin is contemplating assigning his rights under a contract to Bethel. Which form, if any, is required for an assignment to be valid?

Accepted Answer

A)   No form is required.
B)   UCC 4-350 Form.
C)   Assignment Form 2-257.
D)   IRS Form 5-959.
E)   IRS Form 1040.F) A) and E)
G) B) and D)

Question 16

Barbara's parents take out a life insurance policy naming Barbara as the beneficiary. Barbara would be a[n] ________ beneficiary.

Accepted Answer

A)   intended
B)   incidental
C)   preferred
D)   donee
E)   benefactorF) B) and D)
G) B) and C)

Question 17

Which rule states that in the case of multiple assignments of the same right, the first assignee to give notice of assignment to the obligor is the party with rights to the contract?

Accepted Answer

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

Question 18

Which rule affirms that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right?

Accepted Answer

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

Question 19

________ and ________ are types of intended beneficiaries.

Accepted Answer

A)   Creditor, donee
B)   Incidental, special
C)   Incidental, required
D)   Assignor, assignee
E)   Benefactor, benefacteeF) All of the above
G) C) and D)

Question 20

A(n)  ________ is a contractual party who agrees to do something for the other party.

Accepted Answer

A)   Obligor
B)   Obligee
C)   Assignor
D)   Benefactee
E)   BenefactorF) All of the above
G) A) and B)

Exam 19: Third-Party Rights to Contracts

A(n) ________ is a contractual party who agrees to receive something from the other party.

Correct Answer
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Jimmy and Penny enter into a contract. Jimmy transfers his rights under the contract to Luis. Jimmy is a(n) :

Correct Answer
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Correct Answer
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E

If Nadine and Luigi go to court to resolve their contract dispute and their contract has an antiassignment clause, how will the court generally treat the clause?

Correct Answer
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Sally and Matteo enter into a contract in which Matteo, a professional painter, agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Sally pays Matteo $100 but he delegates the painting job to his next door neighbor. Is Matteo's delegation legally valid?

Correct Answer
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D

List four situations under which contractual rights cannot be assigned.

Correct Answer
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Four situations under which contractual ...
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List and discuss two reasons why notice of assignment should be given.

Correct Answer
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Notice of assignment should be given bec...
View Answer

The promisee in a third-party beneficiary contract is the party to the contract who ________ in exchange for the promise made to the third-party beneficiary.

Correct Answer
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The Case Opener involved a lawsuit by fans seeking a refund based on the fact that the Tyson and Holyfield fight was stopped in the third round because Tyson bit off a piece of Holyfield's ear. What was the ruling of the court?

Correct Answer
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Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Correct Answer
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In determining whether a person is an incidental or intended beneficiary, which of the following do courts consider?

Correct Answer
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A[n] ________ beneficiary is a third party who benefits from a contract in which the promisor agrees to give a gift to the third party.

Correct Answer
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A donee beneficiary may enforce rights under a contract only against the ________.

Correct Answer
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B

Assignment of a contract that is personal in nature is generally permitted.

Correct Answer
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Quentin is contemplating assigning his rights under a contract to Bethel. Which form, if any, is required for an assignment to be valid?

Correct Answer
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Barbara's parents take out a life insurance policy naming Barbara as the beneficiary. Barbara would be a[n] ________ beneficiary.

Correct Answer
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Which rule states that in the case of multiple assignments of the same right, the first assignee to give notice of assignment to the obligor is the party with rights to the contract?

Correct Answer
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Which rule affirms that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right?

Correct Answer
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and are types of intended beneficiaries.

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A(n) ________ is a contractual party who agrees to do something for the other party.

Correct Answer
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Exam 19: Third-Party Rights to Contracts

A(n) ________ is a contractual party who agrees to receive something from the other party.

Correct AnswerverifiedShow Answer

Jimmy and Penny enter into a contract. Jimmy transfers his rights under the contract to Luis. Jimmy is a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

If Nadine and Luigi go to court to resolve their contract dispute and their contract has an antiassignment clause, how will the court generally treat the clause?

Correct AnswerverifiedShow Answer

Sally and Matteo enter into a contract in which Matteo, a professional painter, agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Sally pays Matteo $100 but he delegates the painting job to his next door neighbor. Is Matteo's delegation legally valid?

Correct AnswerverifiedD

List four situations under which contractual rights cannot be assigned.

Correct AnswerverifiedFour situations under which contractual ...View AnswerShow Answer

List and discuss two reasons why notice of assignment should be given.

Correct AnswerverifiedNotice of assignment should be given bec...View AnswerShow Answer

The promisee in a third-party beneficiary contract is the party to the contract who ________ in exchange for the promise made to the third-party beneficiary.

Correct AnswerverifiedShow Answer

The Case Opener involved a lawsuit by fans seeking a refund based on the fact that the Tyson and Holyfield fight was stopped in the third round because Tyson bit off a piece of Holyfield's ear. What was the ruling of the court?

Correct AnswerverifiedShow Answer

Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Correct AnswerverifiedShow Answer

In determining whether a person is an incidental or intended beneficiary, which of the following do courts consider?

Correct AnswerverifiedShow Answer

A[n] ________ beneficiary is a third party who benefits from a contract in which the promisor agrees to give a gift to the third party.

Correct AnswerverifiedShow Answer

A donee beneficiary may enforce rights under a contract only against the ________.

Correct AnswerverifiedB

Assignment of a contract that is personal in nature is generally permitted.

Correct AnswerverifiedShow Answer

Quentin is contemplating assigning his rights under a contract to Bethel. Which form, if any, is required for an assignment to be valid?

Correct AnswerverifiedShow Answer

Barbara's parents take out a life insurance policy naming Barbara as the beneficiary. Barbara would be a[n] ________ beneficiary.

Correct AnswerverifiedShow Answer

Which rule states that in the case of multiple assignments of the same right, the first assignee to give notice of assignment to the obligor is the party with rights to the contract?

Correct AnswerverifiedShow Answer

Which rule affirms that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right?

Correct AnswerverifiedShow Answer

________ and ________ are types of intended beneficiaries.

Correct AnswerverifiedShow Answer

A(n) ________ is a contractual party who agrees to do something for the other party.

Correct AnswerverifiedShow Answer

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E

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D

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Four situations under which contractual ...
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Notice of assignment should be given bec...
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B

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and are types of intended beneficiaries.

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