Question 1

List the implied warranties imposed by law on an assignor who has received value for the assignment.

Accepted Answer

The following are the implied warranties...

Question 2

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:

Accepted Answer

A)   is not obligated to either Kellie or Grant to perform the duty unless Hank agrees to do so.
B)   becomes liable for nonperformance to both Kellie and Grant only if Hank promises both Kellie and Grant that he will perform Kellie's duty.
C)   cannot create contractual rights in Grant.
D)   All of these.

Question 5

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan:

Accepted Answer

A)   will be unaffected by Sean's action.
B)   may recover damages from Sean for breach of an implied warranty.
C)   may recover damages from Tanner for breach of an implied warranty.
D)   has lost her right and has no remedy. B

Question 6

Give an example of an assignment of rights and explain the relationship of the parties.

Accepted Answer

An assignment of rights is the voluntary...

Question 7

An intended donee beneficiary may enforce the contract against the promisor only.

Accepted Answer

A) True 
 B)False

Question 8

A(n)  __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

Accepted Answer

A)   assignment
B)   delegation
C)   partial assignment
D)   novation

Question 9

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee.

Accepted Answer

A) True 
 B)False

Question 10

All but which of the following is true about a delegation of duties?

Accepted Answer

A)   When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee.
B)   Contractual duties are generally delegable.
C)   The courts will examine an assignment more closely than a delegation.
D)   A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract.

Question 11

Name four types of contract rights that are non-assignable.

Accepted Answer

Non-assignable contract rights include t...

Question 12

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:

Accepted Answer

A)   an implied beneficiary.
B)   a partial beneficiary.
C)   a donee beneficiary.
D)   an incidental beneficiary.

Question 13

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise. 
b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

Accepted Answer

a. In an assignment and a delegation, the rights of the third party arise sometime after the original contract has been entered. In a third-party beneficiary contract, the rights of the third party arise or are contemplated by the contracting parties at the time the original contract is made. 
b. An assignor is the person making the assignment. The assignee is the person to whom the assignment is made. A delegator is a person making a delegation. A delegatee is the person to whom the delegation is made. An intended beneficiary is a third party intended by the two contracting parties to receive a benefit from their contract. An incidental beneficiary is a third party whom the parties to a contract have no intention of benefiting by their contract but who nevertheless would derive some benefit by the parties' performance of the contract. A creditor beneficiary is a third person intended to receive a benefit from an agreement in order to satisfy a legal duty owed to him.

Question 14

Marlene owes Bailey $750 due June 1. Bailey assigns the debt to Greg on May 1, but neither Bailey nor Greg informs Marlene. On June 1, Marlene pays Bailey. Marlene is fully discharged from her obligation.

Accepted Answer

A) True 
 B)False

Question 15

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Accepted Answer

A)   a donee beneficiary.
B)   a transferee.
C)   a delegatee.
D)   an assignee.

Question 16

Professor Doright 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 Doright's mother is a(n) :

Accepted Answer

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

Question 17

The UCC prohibits assignments of $5,000 or more.

Accepted Answer

A) True 
 B)False

Question 18

A party delegating his duty to a third party is known as a delegator.

Accepted Answer

A) True 
 B)False

Question 19

Contract rights are generally assignable.

Accepted Answer

A) True 
 B)False  True

Question 20

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

List the implied warranties imposed by law on an assignor who has received value for the assignment.

Correct Answer
verified
The following are the implied warranties...
View Answer

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Correct Answer
verified

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

Correct Answer
verified

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:

Correct Answer
verified

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan:

Correct Answer
verified
B

Give an example of an assignment of rights and explain the relationship of the parties.

Correct Answer
verified
An assignment of rights is the voluntary...
View Answer

An intended donee beneficiary may enforce the contract against the promisor only.

Correct Answer
verified

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

Correct Answer
verified

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee.

Correct Answer
verified

All but which of the following is true about a delegation of duties?

Correct Answer
verified

Name four types of contract rights that are non-assignable.

Correct Answer
verified
Non-assignable contract rights include t...
View Answer

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:

Correct Answer
verified

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise. b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

Marlene owes Bailey $750 due June 1. Bailey assigns the debt to Greg on May 1, but neither Bailey nor Greg informs Marlene. On June 1, Marlene pays Bailey. Marlene is fully discharged from her obligation.

Correct Answer
verified

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Correct Answer
verified

Professor Doright 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 Doright's mother is a(n) :

Correct Answer
verified

The UCC prohibits assignments of $5,000 or more.

Correct Answer
verified

A party delegating his duty to a third party is known as a delegator.

Correct Answer
verified

Contract rights are generally assignable.

Correct Answer
verified
True

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Correct Answer
verified

Exam 16: Third Parties to Contracts

List the implied warranties imposed by law on an assignor who has received value for the assignment.

Correct AnswerverifiedThe following are the implied warranties...View AnswerShow Answer

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kellie owes a duty to Grant and Kellie delegates the duty to Hank. Hank:

Correct AnswerverifiedShow Answer

Sean has a right against Tanner and assigns it for value to Megan. Later, Sean gives Tanner a release. Megan:

Correct AnswerverifiedB

Give an example of an assignment of rights and explain the relationship of the parties.

Correct AnswerverifiedAn assignment of rights is the voluntary...View AnswerShow Answer

An intended donee beneficiary may enforce the contract against the promisor only.

Correct AnswerverifiedShow Answer

A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

Correct AnswerverifiedShow Answer

A gratuitous assignment is revocable even after the assignor has made an effective delivery of the assignment to the assignee.

Correct AnswerverifiedShow Answer

All but which of the following is true about a delegation of duties?

Correct AnswerverifiedShow Answer

Name four types of contract rights that are non-assignable.

Correct AnswerverifiedNon-assignable contract rights include t...View AnswerShow Answer

Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:

Correct AnswerverifiedShow Answer

a. Distinguish between an assignment, a delegation, and a third-party beneficiary contract as to the time rights of the third party arise. b. Identify and define the following terms: assignor and assignee; delegator and delegatee; intended beneficiary, incidental beneficiary, creditor beneficiary.

Marlene owes Bailey $750 due June 1. Bailey assigns the debt to Greg on May 1, but neither Bailey nor Greg informs Marlene. On June 1, Marlene pays Bailey. Marlene is fully discharged from her obligation.

Correct AnswerverifiedShow Answer

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Correct AnswerverifiedShow Answer

Professor Doright 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 Doright's mother is a(n) :

Correct AnswerverifiedShow Answer

The UCC prohibits assignments of $5,000 or more.

Correct AnswerverifiedShow Answer

A party delegating his duty to a third party is known as a delegator.

Correct AnswerverifiedShow Answer

Contract rights are generally assignable.

Correct AnswerverifiedTrue

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Correct AnswerverifiedShow Answer

Correct Answer
verified
The following are the implied warranties...
View Answer

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B

Correct Answer
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An assignment of rights is the voluntary...
View Answer

Correct Answer
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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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Non-assignable contract rights include t...
View Answer

Correct Answer
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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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Correct Answer
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True

Correct Answer
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