Question 1

A third person automatically has the status of an intended third-party beneficiary regardless of the parties' intentions at the time of contracting.

Accepted Answer

A) True 
 B)False

Question 2

A professor owned a home next door to a very dilapidated, neglected home. John Cataldo purchased the home next door and made a contract with Wizard Home Improvements for a complete renovation of the property. The professor was delighted because the improvement of the Cataldo home was upgrading the neighborhood and raising the value of the professor's home.?After making the last required payment on the contract, John Cataldo became seriously ill and ultimately was taken to a nursing home for care.?When Wizard learned of Cataldo's illness and confinement, Wizard ceased work on the Cataldo home. Because the outside renovation work had not been completed, the premises began to return to its former rundown condition. The professor ultimately sued Wizard as a third-party beneficiary of the contract between Cataldo and Wizard. What is the probable outcome of the lawsuit?

Accepted Answer

The professor's lawsuit will be dismisse...

Question 3

An obligor may delegate his or her duties to perform under a contract when the:

Accepted Answer

A)   performance of the duty is standardized and nonpersonal.
B)   obligor is unable to perform his or her duties.
C)   contract is silent as to the right of assignment.
D)   obligor is an expert in his or her specialized duties under the contract.

Question 4

In general, an assignee stands:

Accepted Answer

A)   in a position subordinate to the assignor.
B)   exactly in the position of the assignor.
C)   in a position superior to the assignor.
D)   in a position similar to, but not equal to, the assignor.

Question 5

An assignment of royalties to a song:

Accepted Answer

A)   is a contract.
B)   requires consideration.
C)   is a transfer of rights.
D)   is not enforceable.

Question 6

Intended beneficiaries and creditor beneficiaries can be the same person.

Accepted Answer

A) True 
 B)False

Question 7

A third-party beneficiary:

Accepted Answer

A)   may be obligated to pay for services rendered.
B)   may bring suit on and enforce the contract.
C)   must consent to the contract.
D)   must be identified by name.

Question 8

The right to file a legal claim may not be assigned.

Accepted Answer

A) True 
 B)False

Question 9

A third-party beneficiary contract may be amended:

Accepted Answer

A)   without the consent of the beneficiary.
B)   by operation of law.
C)   regardless of whether the contract allows modifications without the beneficiary's consent.
D)   automatically when either party dies.

Question 10

Which of the following duties would most likely not be delegable?

Accepted Answer

A)   Joe has a contractual duty to pay Izzie $50.
B)   Ken has a contractual duty to deliver 50 bushels of corn to Martin by October 1.
C)   Andy has a duty to teach an accounting class at a community college during the fall semester.
D)   Josh has a duty to mow Genelle's lawn at least once a week.

Question 11

The rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings.

Accepted Answer

A) True 
 B)False

Question 12

In general, one may assign rights if that does not cause the obligor's duties to increase or change materially.

Accepted Answer

A) True 
 B)False

Question 13

A person entitled to receive money may generally assign that right to another person.

Accepted Answer

A) True 
 B)False

Question 14

The party making an assignment is called the:

Accepted Answer

A)   assignee.
B)   assignor.
C)   obligor.
D)   successor.

Question 15

An assignee's rights are the same as those that had been possessed by the assignor.

Accepted Answer

A) True 
 B)False

Question 16

The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.

Accepted Answer

A) True 
 B)False

Question 17

An assignment is a transfer of duties, and a delegation is a transfer of rights.

Accepted Answer

A) True 
 B)False

Question 18

The making of an assignment relieves the assignor of any and all obligations existing under the original contract.

Accepted Answer

A) True 
 B)False

Question 19

Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop-N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is:

Accepted Answer

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

Question 20

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

Accepted Answer

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

Exam 17: Third Persons and Contracts

Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop-N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is:

Correct Answer
verified

An obligor may delegate his or her duties to perform under a contract when the:

Correct Answer
verified

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

Correct Answer
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The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.

Correct Answer
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Intended beneficiaries and creditor beneficiaries can be the same person.

Correct Answer
verified

The right to file a legal claim may not be assigned.

Correct Answer
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The party making an assignment is called the:

Correct Answer
verified

An assignment is a transfer of duties, and a delegation is a transfer of rights.

Correct Answer
verified

The rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings.

Correct Answer
verified

In general, an assignee stands:

Correct Answer
verified

The making of an assignment relieves the assignor of any and all obligations existing under the original contract.

Correct Answer
verified

In general, one may assign rights if that does not cause the obligor's duties to increase or change materially.

Correct Answer
verified

An assignee's rights are the same as those that had been possessed by the assignor.

Correct Answer
verified

A person entitled to receive money may generally assign that right to another person.

Correct Answer
verified

Correct Answer
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The professor's lawsuit will be dismisse...
View Answer

Which of the following duties would most likely not be delegable?

Correct Answer
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A third-party beneficiary contract may be amended:

Correct Answer
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A third-party beneficiary:

Correct Answer
verified

A third person automatically has the status of an intended third-party beneficiary regardless of the parties' intentions at the time of contracting.

Correct Answer
verified

An assignment of royalties to a song:

Correct Answer
verified

Exam 17: Third Persons and Contracts

Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop-N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is:

Correct AnswerverifiedShow Answer

An obligor may delegate his or her duties to perform under a contract when the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.

Correct AnswerverifiedShow Answer

Intended beneficiaries and creditor beneficiaries can be the same person.

Correct AnswerverifiedShow Answer

The right to file a legal claim may not be assigned.

Correct AnswerverifiedShow Answer

The party making an assignment is called the:

Correct AnswerverifiedShow Answer

An assignment is a transfer of duties, and a delegation is a transfer of rights.

Correct AnswerverifiedShow Answer

The rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings.

Correct AnswerverifiedShow Answer

In general, an assignee stands:

Correct AnswerverifiedShow Answer

The making of an assignment relieves the assignor of any and all obligations existing under the original contract.

Correct AnswerverifiedShow Answer

In general, one may assign rights if that does not cause the obligor's duties to increase or change materially.

Correct AnswerverifiedShow Answer

An assignee's rights are the same as those that had been possessed by the assignor.

Correct AnswerverifiedShow Answer

A person entitled to receive money may generally assign that right to another person.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe professor's lawsuit will be dismisse...View AnswerShow Answer

Which of the following duties would most likely not be delegable?

Correct AnswerverifiedShow Answer

A third-party beneficiary contract may be amended:

Correct AnswerverifiedShow Answer

A third-party beneficiary:

Correct AnswerverifiedShow Answer

A third person automatically has the status of an intended third-party beneficiary regardless of the parties' intentions at the time of contracting.

Correct AnswerverifiedShow Answer

An assignment of royalties to a song:

Correct AnswerverifiedShow 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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Correct Answer
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Correct Answer
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The professor's lawsuit will be dismisse...
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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