Question 1

Both intended and incidental beneficiaries acquire legal rights in a contract.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Rights to receive funds can be assigned.

Accepted Answer

A) True 
 B)False

Question 4

Alienation is a transfer of land ownership.

Accepted Answer

A) True 
 B)False

Question 5

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 6

The assignment of the same contract right to two different parties automatically cancels both assignments.

Accepted Answer

A) True 
 B)False

Question 7

A donee beneficiary is any third person who receives a benefit from a contract even though that person's benefit is not the reason the contract was made.

Accepted Answer

A) True 
 B)False

Question 8

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff.When Pierce's schedule conflicts,he asks Rachel to do the cutting and trimming.This transfer of duties is​

Accepted Answer

A)   ​a delegation. 
B)   ​an assignment. 
C)   ​a third party beneficiary contract. 
D)   ​prohibited.E) A) and B)
F) A) and C)

Question 9

Uri and Victor enter into a contract by which Uri promises to deliver business cards,advertising banners,and other marketing materials to Victor.Uri later transfers his duty under the contract to Wren.Uri is​

Accepted Answer

A)   ​a delegator. 
B)   ​a delegatee. 
C)   ​an assignor. 
D)   ​an assignee.E) B) and D)
F) None of the above

Question 10

James and MaryElise enter into a contract.James agrees to mow MaryElise's yard every week for the summer.MaryElise is the

Accepted Answer

A)   ​obligor. 
B)   ​obligee. 
C)   ​assignee. 
D)   ​assignor.E) B) and D)
F) All of the above

Question 11

Richly Retail Outlets,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the contract cannot be assigned because

Accepted Answer

A)   ​Richly did not consent to the assignment. 
B)   ​Richly did not receive adequate consideration for the assignment. 
C)   ​the assignment will materially increase the risk of nonperformance. 
D)   ​Town Builders was not an original party to the deal.E) C) and D)
F) A) and B)

Question 12

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 13

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month.Laramie cannot transfer this duty​

Accepted Answer

A)   ​under any circumstances. 
B)   ​without continuing to be potentially liable. 
C)   ​without Miles's consent. 
D)   ​without paying Miles at least one monthly fee.E) A) and C)
F) All of the above

Question 14

Forrest makes and sells furniture.Forrest and Glenda enter into a contract for the delivery of Forrest's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price.Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers.This transfer is

Accepted Answer

A)   ​a delegation. 
B)   ​an assignment. 
C)   ​a third party beneficiary contract. 
D)   ​prohibited.E) C) and D)
F) A) and B)

Question 15

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary.Jackie's rights under the contract will vest​

Accepted Answer

A)   ​automatically. 
B)   ​if she demonstrates her consent to the promise at Hilda's request. 
C)   ​if Indemnity attempts to modify the terms of the contract. 
D)   ​on the occurrence of the event for which the insurance was procured.E) C) and D)
F) None of the above

Question 16

All that a delegator needs to do to make a delegation effective is to express an intention to make the delegation.

Accepted Answer

A) True 
 B)False

Question 17

Revenue & Sales Corporation and Software Solutions,Inc.,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500.Software Solutions transfers the right to payment under the contract to Creditline Company.Creditline is

Accepted Answer

A)   ​an assignor. 
B)   ​an assignee. 
C)   anobligee. 
D)   ​a delegatee.E) None of the above
F) A) and B)

Question 18

In an assignment,the party assigning the rights to a third party is the assignee.

Accepted Answer

A) True 
 B)False

Question 19

A transfer of contract rights to a third party is an assignment.

Accepted Answer

A) True 
 B)False

Question 20

A special form is required to create a delegation of duties.

Accepted Answer

A) True 
 B)False

Exam 16: Third Party Rights

In an assignment,the party assigning the rights to a third party is the assignee.

Correct AnswerverifiedShow Answer

Rights to receive funds can be assigned.

Correct AnswerverifiedShow Answer

Richly Retail Outlets,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the contract cannot be assigned because

Correct AnswerverifiedShow Answer

The assignment of the same contract right to two different parties automatically cancels both assignments.

Correct AnswerverifiedShow Answer

James and MaryElise enter into a contract.James agrees to mow MaryElise's yard every week for the summer.MaryElise is the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A transfer of contract rights to a third party is an assignment.

Correct AnswerverifiedShow Answer

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff.When Pierce's schedule conflicts,he asks Rachel to do the cutting and trimming.This transfer of duties is​

Correct AnswerverifiedShow Answer

Uri and Victor enter into a contract by which Uri promises to deliver business cards,advertising banners,and other marketing materials to Victor.Uri later transfers his duty under the contract to Wren.Uri is​

Correct AnswerverifiedShow Answer

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary.Jackie's rights under the contract will vest​

Correct AnswerverifiedShow Answer

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

Correct AnswerverifiedShow Answer

Both intended and incidental beneficiaries acquire legal rights in a contract.

Correct AnswerverifiedShow Answer

All that a delegator needs to do to make a delegation effective is to express an intention to make the delegation.

Correct AnswerverifiedShow Answer

Revenue & Sales Corporation and Software Solutions,Inc.,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500.Software Solutions transfers the right to payment under the contract to Creditline Company.Creditline is

Correct AnswerverifiedShow Answer

Alienation is a transfer of land ownership.

Correct AnswerverifiedShow Answer

A special form is required to create a delegation of duties.

Correct AnswerverifiedShow Answer

Forrest makes and sells furniture.Forrest and Glenda enter into a contract for the delivery of Forrest's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price.Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers.This transfer is

Correct AnswerverifiedShow Answer

A donee beneficiary is any third person who receives a benefit from a contract even though that person's benefit is not the reason the contract was made.

Correct AnswerverifiedShow Answer

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

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Laramie contracts to provide cattle-herding services to Miles for $1,400 per month.Laramie cannot transfer this duty​

Correct AnswerverifiedShow Answer

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Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff.When Pierce's schedule conflicts,he asks Rachel to do the cutting and trimming.This transfer of duties is

Correct Answer
verified

Uri and Victor enter into a contract by which Uri promises to deliver business cards,advertising banners,and other marketing materials to Victor.Uri later transfers his duty under the contract to Wren.Uri is

Correct Answer
verified

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary.Jackie's rights under the contract will vest

Correct Answer
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Correct Answer
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Laramie contracts to provide cattle-herding services to Miles for $1,400 per month.Laramie cannot transfer this duty

Correct Answer
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