Question 1

When an assignor transfers her rights to an assignee,the assignor still retains the right to collect on the contract.

Accepted Answer

A) True 
 B)False  False

Question 2

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 the party in question paid something for the rights.
C)  The courts ask if it is substantially certain that the contracting parties intended to benefit the party in question.
D)  The courts ask if the party in question paid at least $500 for the rights.
E)  The courts ask if it can be proven beyond a reasonable doubt that the contracting parties intended to benefit the party in question.

Question 3

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Accepted Answer

A)  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.
B)  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.
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)  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.
E)  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.

Question 4

When can an assignee decline an assignment?

Accepted Answer

A)  If he declines in a timely fashion and has not agreed to the assignment.
B)  Only if the assignment would impose additional obligations.
C)  If he declines within the time limit set by the UCC.
D)  If he declines within the time limit set by the statute of frauds.
E)  Never.

Question 5

[Portraits] Tori,a famous portrait painter,agreed to paint Harry's portrait for $4,000.She also agreed to paint the portraits of Gabby's two Corgi dogs,Queenie and Prince.Gabby agreed to pay Tori $10,000 for the two Corgi portraits.Tori charged Gabby more because she met the spoiled dogs,and they really got on her nerves.Tori subsequently fell behind on finishing Harry's portrait,so she assigned the right to receive the money for the dog portraits to her assistant,Justin,and delegated the duty to Justin to paint the dog portraits.Justin eagerly accepted,and painted the portraits.Tori also assigned to Justin the right to receive payment from Harry,to satisfy various payments she owed him for other duties.The contract Tori had with Gabby did not address assignment in any way.The contract Tori had with Harry,however,prohibited the right to assign payment for services received.Harry considered himself to be an experienced business person,and insisted on that anti-assignment clause because he had read somewhere that such a provision was a good idea.Tori finished the portrait of Harry and called him to come and pick it up.Meanwhile,a disgruntled secretary who disliked Tori told both Gabby and Harry about the assignments to Justin.Gabby was furious and refused to pick up the portrait or to pay anyone.Harry likewise refused to pay for his portrait.
-What would be the most likely result if Tori sues Gabby for the $10,000 payment?

Accepted Answer

A)  Tori will win because the contract did not contain an express provision prohibiting assignment or delegation of contractual rights and duties.
B)  Tori will win only if Justin did a good job on the portraits.
C)  Tori will win regardless of what type of job Justin did on the portraits so long as he was a qualified portrait painter.
D)  Gabby will win because the portrait was personal in nature and could not be assigned.
E)  Tori will win because Justin was employed as her assistant.

Question 6

Parties not in ________ usually do not have rights to a contract.

Accepted Answer

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

Question 7

Which of the following is the likely result if Bobby sues Laura for the $40 that Jaya owes him for the book?

Accepted Answer

A)  Bobby will lose because his only right of action is against Jaya.
B)  Bobby will win.
C)  Bobby will lose because he was not aware of the assignment before the duties were completed.
D)  Bobby will lose because the attempted delegation was against public policy.
E)  Bobby will win only if he can prove that Jaya has insufficient funds with which to pay him.

Question 8

When a party to a contract transfers his or her rights to a contract to a third party,which of the following occurs?

Accepted Answer

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

Question 9

Simone assigned her rights under a contract to Juan.Forgetting that she took this action,she later assigned her rights under the contract to Kai.Kai provided notice to the obligor of the assignment right away,but Juan never provided notice.The state gives Kai the rights.Which rule did the state apply?

Accepted Answer

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

Question 10

Which statement is true with respect to whether a contract may be assigned even in the presence of an antiassignment clause?

Accepted Answer

A)  Assignments made by operation of law,assignments for the right to receive monetary payments,and assignments for the right to receive damages for a breach of contract to sell goods or services may be assigned even in the presence of an antiassignment clause.
B)  No contractual rights or duties may be assigned in the presence of an antiassignment clause.
C)  Antiassignment clauses are void as against public policy and have no effect on the right of assignment.
D)  Assignments for the right to receive monetary payments may be assigned,but no other assignments may be made in the presence of an antiassignment clause.
E)  Assignments made by operation of law may be assigned,but no other assignments may be made in the presence of an antiassignment clause. A

Question 11

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)  Promised
B)  Avowed
C)  Creditor
D)  Incidental
E)  Donee

Question 12

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

Accepted Answer

A)  Promisee
B)  Obligee
C)  Promisor
D)  Obligor
E)  Assignee

Question 13

Which of the following are types of intended beneficiaries?

Accepted Answer

A)  Incidental and creditor,but not donee
B)  Creditor but not donee or incidental
C)  Donee but not creditor or incidental
D)  Creditor,donee,and incidental
E)  Donee and creditor,but not incidental

Question 14

How do courts generally treat antiassignment clauses?

Accepted Answer

A)  As promises
B)  As ineffective clauses
C)  As void under statute of frauds
D)  As invalid clauses
E)  As clauses against public policy

Question 15

What is one reason why the right to assign monetary payments cannot be denied?

Accepted Answer

A)  Because denial of the right to assign monetary payments would be a violation of the UCC.
B)  Because privity of contract gives each party the right to assign monetary payments
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 denial of the right to assign monetary payments would be a violation of the statute of frauds.

Question 16

Jason is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property,and he believes that the subdivision will significantly increase the value of his property.Jason is so pleased that he puts in a new swimming pool to celebrate.However,the developer changes his mind and decides not to develop the subdivision.Jason is angry and asks if he can sue the developer,particularly since he can establish reliance.What would you tell Jason and why? Discuss whether you agree with the law on this issue and why or why not.

Accepted Answer

Jason cannot sue the developer...

Question 17

A third party who benefits from a contract in which the promisor agrees to pay the promisee's debt is a[n] ________ beneficiary.

Accepted Answer

A)  Donee
B)  Creditor
C)  Avowed
D)  Promised
E)  Incidenta l

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 French rule
C)  The last-assignment-in-time rule
D)  The English rule
E)  The American rule

Question 19

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

Question 20

A third party,who is not part of an original contract,but to whom a duty to perform contained in the original contract is transferred,is called a[n] .

Accepted Answer

A)  Delegator
B)  Assignee
C)  Assignor
D)  Transferor
E)  Delegatee

Exam 19: Third-Party Rights to Contracts

When an assignor transfers her rights to an assignee,the assignor still retains the right to collect on the contract.

Correct Answer
verified
False

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

Correct Answer
verified

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Correct Answer
verified

When can an assignee decline an assignment?

Correct Answer
verified

Correct Answer
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Parties not in ________ usually do not have rights to a contract.

Correct Answer
verified
C

Which of the following is the likely result if Bobby sues Laura for the $40 that Jaya owes him for the book?

Correct Answer
verified

When a party to a contract transfers his or her rights to a contract to a third party,which of the following occurs?

Correct Answer
verified

Correct Answer
verified

Which statement is true with respect to whether a contract may be assigned even in the presence of an antiassignment clause?

Correct Answer
verified
A

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
verified

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

Correct Answer
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Which of the following are types of intended beneficiaries?

Correct Answer
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How do courts generally treat antiassignment clauses?

Correct Answer
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What is one reason why the right to assign monetary payments cannot be denied?

Correct Answer
verified

Correct Answer
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Jason cannot sue the developer...
View Answer

A third party who benefits from a contract in which the promisor agrees to pay the promisee's debt is a[n] ________ beneficiary.

Correct Answer
verified

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
verified

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
verified

A third party,who is not part of an original contract,but to whom a duty to perform contained in the original contract is transferred,is called a[n] .

Correct Answer
verified

Exam 19: Third-Party Rights to Contracts

When an assignor transfers her rights to an assignee,the assignor still retains the right to collect on the contract.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

Which factors are considered by a court in determining whether a party is an intended or incidental beneficiary?

Correct AnswerverifiedShow Answer

When can an assignee decline an assignment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Parties not in ________ usually do not have rights to a contract.

Correct AnswerverifiedC

Which of the following is the likely result if Bobby sues Laura for the $40 that Jaya owes him for the book?

Correct AnswerverifiedShow Answer

When a party to a contract transfers his or her rights to a contract to a third party,which of the following occurs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which statement is true with respect to whether a contract may be assigned even in the presence of an antiassignment clause?

Correct AnswerverifiedA

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

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

Correct AnswerverifiedShow Answer

Which of the following are types of intended beneficiaries?

Correct AnswerverifiedShow Answer

How do courts generally treat antiassignment clauses?

Correct AnswerverifiedShow Answer

What is one reason why the right to assign monetary payments cannot be denied?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJason cannot sue the developer...View AnswerShow Answer

A third party who benefits from a contract in which the promisor agrees to pay the promisee's debt is a[n] ________ beneficiary.

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

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

A third party,who is not part of an original contract,but to whom a duty to perform contained in the original contract is transferred,is called a[n] .

Correct AnswerverifiedShow Answer

Correct Answer
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False

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C

Correct Answer
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A

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Jason cannot sue the developer...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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