Question 1

Professor Dought has a life insurance policy on his own life that provides that in the event of his death,his mother will receive the proceeds.Professor Dought's mother is a(n) :

Accepted Answer

A)   incidental beneficiary.
B)   creditor beneficiary.
C)   donee beneficiary.
D)   assignee.

Question 2

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but no new or additional rights.

Accepted Answer

A) True 
 B)False

Question 3

Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

Accepted Answer

A) True 
 B)False

Question 4

The right to property other than money,such as goods or land,is not assignable.

Accepted Answer

A) True 
 B)False

Question 5

In a novation,the delegator is discharged and the third party becomes directly bound upon his promise to the obligee.

Accepted Answer

A) True 
 B)False

Question 6

Generally,rights under an option contract are not assignable.

Accepted Answer

A) True 
 B)False

Question 7

Mr.Homayer hired Blake Painters to paint his house.Blake decides it has too many jobs and delegates the duties to the Andrews Company.Andrews does a poor job,and drips paint on the Homayers' flowers and windows.Mr.Homayer:

Accepted Answer

A)   can sue both Blake and Andrews.
B)   can sue Blake,but he cannot sue Andrews.
C)   can sue Andrews,but he cannot sue Blake.
D)   cannot sue,because he has accepted the benefits of the assignment.

Question 8

The law governing assignments arises solely from the common law of contracts.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is correct with regard to successive assignments of the same right?

Accepted Answer

A)   It is impossible for an assignor to assign the same right more than once.
B)   In England,the first assignee to notify the obligor prevails.
C)   The Restatement does not recognize the validity of any successive assignments.
D)   The majority rule in the United States is that the first assignee to notify the obligor prevails.

Question 10

An assignor normally guarantees that the obligor will pay the assigned debt.

Accepted Answer

A) True 
 B)False

Question 11

Unless otherwise provided by statute,an assignment may be oral.

Accepted Answer

A) True 
 B)False

Question 12

Though contractual duties generally are delegable;a delegation will not be permitted if the nature of the duties is personal in that the obligee has a substantial interest in having the delegator perform the contract.

Accepted Answer

A) True 
 B)False

Question 13

After an assignment,only the assignee has a right to the obligor's performance.

Accepted Answer

A) True 
 B)False

Question 14

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

Accepted Answer

A) True 
 B)False

Question 15

Anita owes Brad $75,000.Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita.Brad delivers the signed statement to Glen six weeks before Brad dies.The assignment is:

Accepted Answer

A)   irrevocable because of the delivery of the statement.
B)   terminated upon Brad's death.
C)   irrevocable because of the signing of the statement.
D)   invalid because it is revocable.

Question 16

A(n) ____ is a third party who obtains possible benefits but no rights under a contract.

Accepted Answer

A)   incidental beneficiary
B)   intended beneficiary
C)   assignor
D)   donee beneficiary

Question 17

Some states have statutes which prohibit an employee from assigning his future wages.

Accepted Answer

A) True 
 B)False

Question 18

The UCC imposes a writing requirement on all assignments of $500 or more.

Accepted Answer

A) True 
 B)False

Question 19

Notice of an assignment:

Accepted Answer

A)   must be given to the obligor.
B)   cuts off any defenses based on prior agreements between the obligor and assignor.
C)   precludes subsequent setoffs and counterclaims of the obligor that arise out of entirely separate matters.
D)   All of these.

Question 20

Lynne is the intended beneficiary of a third-party contract.Her rights have vested.In an action by Lynne to enforce the promise,the promisor may assert the defense of:

Accepted Answer

A)   rescission.
B)   contractual modification.
C)   fraud.
D)   All of these.

Exam 16: Third Parties to Contracts

Lynne is the intended beneficiary of a third-party contract.Her rights have vested.In an action by Lynne to enforce the promise,the promisor may assert the defense of:

Correct AnswerverifiedShow Answer

The right to property other than money,such as goods or land,is not assignable.

Correct AnswerverifiedShow Answer

After an assignment,only the assignee has a right to the obligor's performance.

Correct AnswerverifiedShow Answer

Anita owes Brad $75,000.Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita.Brad delivers the signed statement to Glen six weeks before Brad dies.The assignment is:

Correct AnswerverifiedShow Answer

Which of the following is correct with regard to successive assignments of the same right?

Correct AnswerverifiedShow Answer

The delegation of a duty still leaves the delegator responsible for the performance of the duty.

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Mr.Homayer hired Blake Painters to paint his house.Blake decides it has too many jobs and delegates the duties to the Andrews Company.Andrews does a poor job,and drips paint on the Homayers' flowers and windows.Mr.Homayer:

Correct AnswerverifiedShow Answer

In a novation,the delegator is discharged and the third party becomes directly bound upon his promise to the obligee.

Correct AnswerverifiedShow Answer

Though contractual duties generally are delegable;a delegation will not be permitted if the nature of the duties is personal in that the obligee has a substantial interest in having the delegator perform the contract.

Correct AnswerverifiedShow Answer

The general rule is that an assignee stands in the shoes of the assignor.He acquires the rights of the assignor but no new or additional rights.

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An assignor normally guarantees that the obligor will pay the assigned debt.

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A(n) ____ is a third party who obtains possible benefits but no rights under a contract.

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Assignment of rights is the voluntary transfer to a third party of the rights arising from a contract.

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Some states have statutes which prohibit an employee from assigning his future wages.

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The law governing assignments arises solely from the common law of contracts.

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Notice of an assignment:

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Professor Dought has a life insurance policy on his own life that provides that in the event of his death,his mother will receive the proceeds.Professor Dought's mother is a(n) :

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Unless otherwise provided by statute,an assignment may be oral.

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The UCC imposes a writing requirement on all assignments of $500 or more.

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Generally,rights under an option contract are not assignable.

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