Exam 19: Third-Party Rights to Contracts

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

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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.

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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.

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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.

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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.

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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

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

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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.

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

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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.

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

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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.

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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.

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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.

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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.

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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.

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

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