Question 1

The Mandarin City contracts with the Zoid Construction Company to construct a new sewer system for the city.Later,Zoid breaches the contract.George,a resident of the city,sues Zoid for its breach of contract.Can George recover? Why or why not?

Accepted Answer

The answer of The Mandarin City contracts with the Zoid...

Question 2

Which of the following statements about the vesting of a beneficiary's rights is false?
A)Courts have held that there is a point at which the rights of the beneficiary vest.
B)A modification or discharge that occurs after the beneficiary's rights have vested cannot be asserted as a defense to a suit brought by the beneficiary.
C)A provision of the contract between the promisor and the promisee stating that the duty to the beneficiary cannot be modified would be effective to prevent modification.
D)The exact time at which the beneficiary's rights vests is identical in every jurisdiction.

Accepted Answer

The exact time at which the beneficiary's rights vest differs from jurisdiction to jurisdiction.Some courts have held that vesting occurs when the contract is formed,while others hold that vesting does not occur until the beneficiary learns of the contract and consents to it or does some act in reliance on the promise.

Question 3

Why is it important for an assignee to immediately notify the obligor of the assignment?

Accepted Answer

The answer of Why is it important for an assignee...

Question 4

If a contract is breached,the donee beneficiary will only have a cause of action against the:
A)promisee.
B)donor.
C)breaching party.
D)promisor.

Accepted Answer

If the contract is breached,the donee beneficiary will have a cause of action against the promisor,but not against the promisee (donor).

Question 5

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.However,Hailey breaches the contract.Which of the following statements is true?
A)Connie's benefit was purely incidental to the contracting parties' primary purpose.
B)Connie can sue Hailey and recover damages for her breach.
C)Connie is a donee beneficiary.
D)Connie acquired rights under the contract.

Accepted Answer

The contract between Hailey and Construction Inc.was made for the purpose of benefiting themselves.Any advantage derived by Connie is purely incidental to their primary purpose.Thus,Connie could not sue and recover damages if either Hailey or Construction Inc.breached the contract.

Question 6

As discussed in the case in the text,Wallis v.Brainerd Baptist Church,a third party seeking to recover under a contract bears the burden of proving he was the intended third-party beneficiary of the contract at the time:
A)he brought his suit.
B)he was made aware of the contract.
C)of contracting.
D)he relied on the contract.

Accepted Answer

The court discussed that a third party may seek to recover under a contract,but the third party bears the burden of proving,from the terms of the contract or the circumstances surrounding its execution,that,at the time of contracting,he was an intended third-party beneficiary of the contract.

Question 7

What is the purpose of vesting?

Accepted Answer

The answer of What is the purpose of vesting?...

Question 8

If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a(n):
A)donee beneficiary.
B)creditor beneficiary.
C)assignee.
D)incidental beneficiary.

Accepted Answer

If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a creditor beneficiary.

Question 9

Barry and Andrew contract for the sale of 100 widgets (goods)from Barry to Andrew for $1,000.The contract contains a clause prohibiting assignment of "the contract." Nonetheless,Andrew assigns "the contract" to Smith.Is there a valid assignment of contract rights here? Is there a delegation of duties?

Accepted Answer

The answer of Barry and Andrew contract for the sale...

Question 10

Amelia contracts to have her portrait painted by Hamilton for $10,000.Hamilton assigns the contract to Drew,another artist.Has there been a valid delegation of duties here? Why or why not?

Accepted Answer

The answer of Amelia contracts to have her portrait painted...

Quiz 17: Rights of Third Parties

The Mandarin City contracts with the Zoid Construction Company to construct a new sewer system for the city.Later,Zoid breaches the contract.George,a resident of the city,sues Zoid for its breach of contract.Can George recover? Why or why not?

Which of the following statements about the vesting of a beneficiary's rights is false?

Why is it important for an assignee to immediately notify the obligor of the assignment?

If a contract is breached,the donee beneficiary will only have a cause of action against the:

Hailey contracts with Construction Inc.to build a valuable structure on her land.The performance of the contract would constitute a benefit to Connie,Hailey's next-door neighbor,by increasing the value of Connie's land.However,Hailey breaches the contract.Which of the following statements is true?

As discussed in the case in the text,Wallis v.Brainerd Baptist Church,a third party seeking to recover under a contract bears the burden of proving he was the intended third-party beneficiary of the contract at the time:

What is the purpose of vesting?

If the promisor's performance is intended to satisfy a legal duty that the promisee owes to a third party,the third party is a(n) :

Amelia contracts to have her portrait painted by Hamilton for $10,000.Hamilton assigns the contract to Drew,another artist.Has there been a valid delegation of duties here? Why or why not?