Question 1

Which of the following statements is false regarding the rights of assignees and assignors?
A)Assignees essentially fill in for the assignor as the legal recipient of contractual duties.
B)Assignees acquire the same rights as those of the assignor.
C)Assignees are entitled to greater contractual protections than those afforded assignors.
D)The obligor may raise any of the same defenses for nonperformance to the assignee that he would have been able to raise against the assignor.
E)When an assignor transfers rights to an assignee,the assignor legally gives up all rights she previously had to collect on the contract.

Accepted Answer

When an assignor transfers her rights to an assignee,the assignor legally gives up all rights she previously had to collect on the contract.The assignee essentially fills in for the assignor as the legal recipient of the contractual duties.As such,the assignee acquires the same rights the assignor had.The assignee is offered no additional protections.Moreover,the obligor may raise any of the same defenses for nonperformance to the assignee as he would have been able to raise against the assignor.

Question 2

A(n)________ clause is a clause parties include in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final,complete version of the agreement.
A)adhesion
B)addendum
C)parol
D)merger
E)consolidation

Accepted Answer

Sometimes parties take the initiative and attempt to signal to judges that the written agreement is intended to be the final and complete statement of the agreement.A merger clause is a clause parties include in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final,complete version of the agreement.Where merger clauses are accepted,they greatly reduce the amount of guesswork courts must do in determining whether a written agreement was,in fact,intended to be the final statement of the agreement.

Question 3

Sally agrees to mow Paul's yard for $300 for the summer.Paul wishes to assign the contract to his grandmother.Sally objects because Paul's yard is very small while the grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Sally and Paul?
A)Sally will win because Paul's attempted assignment would increase the duties to which she agreed.
B)Sally will win because all assignments are invalid without the obligor's consent.
C)Sally will win unless Paul paid her the $300 in advance.
D)Paul will win because he may validly assign the contract without Sally's consent.
E)Paul will win so long as he tells Sally about the assignment prior to the time she begins performance.

Accepted Answer

Although rights can be assigned as a general rule,they cannot be assigned when the assignment would increase the risk or duties the obligor would face in fulfilling the original contract.In this example,Sally will win in her legal dispute with Paul because Paul's attempted assignment would increase her burden of performance.

Question 4

What is a purpose of the parol evidence rule?
A)To restrict oral evidence from being admitted that supports an agreement in its written form.
B)To restrict written evidence from being admitted that supports an agreement in its written form.
C)To restrict oral and written evidence from being admitted that supports an agreement in its written form.
D)To restrict hearsay from being admitted that supports or contradicts an agreement in its written form.
E)To restrict evidence from being admitted that substantially contradicts an agreement in its written form.

Accepted Answer

The purpose of the parol evidence rule is to restrict evidence from being admitted that substantially contradicts the agreement in its written form.Therefore,evidence of prior agreements and negotiations,as well as of contemporaneous agreements and negotiations,is typically excluded under the parol evidence rule.

Question 5

What is the term for the third party who receives an assignment of contract rights?
A)Principal
B)Incidental beneficiary
C)Delegatee
D)Assignor
E)Assignee

Accepted Answer

An assignment occurs when a party to a contract transfers her rights to the contract to a third party.The assignee is the party who receives the rights of the assignor to collect what was contractually agreed on in the original agreement.

Question 6

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement?
A)When a court determines that a written agreement represents a complete and final version of the agreement.
B)When a court determines that a written agreement does not represent a complete and final version of the agreement.
C)When a court determines that there is disagreement between the parties over performance of the agreement.
D)When a court determines that the plaintiff failed to do sufficient research to determine if signing the agreement was advisable.
E)When a court determines that neither party failed to obtain counsel to determine if signing the agreement was advisable.

Accepted Answer

When a court determines that the written agreement does not represent a complete and final version of the agreement,evidence may be admissible to further the court's understanding of the agreement.The admissible evidence is limited to additional elements,missing in the writing,that are consistent with the written agreement.These elements may be terms typically included in similar transactions that were left out of the specific writing,or they may be separate agreements in which consideration was offered.

Question 7

What is the term for a party to a contract who transfers her rights under the contract to a third party?
A)Donor beneficiary
B)Debtor beneficiary
C)Delegator
D)Assignor
E)Assignee

Accepted Answer

An assignment occurs when a party to a contract transfers her rights to the contract to a third party.The assignor is the party to the original contract who transfers his or her rights under the contract to a third party,giving that third party the right to receive what was contractually agreed on in the original contract.

Question 8

Which of the following is a contractual party who agrees to receive something from the other party?
A)Obligor
B)Obligee
C)Assignor
D)Assignee
E)Delegatee

Accepted Answer

Typically,contracting parties are both obligors and obligees.That is,both parties are obligors (contractual parties who agreed to do something for each other)and obligees (contractual parties who agreed to receive something from each other).

Question 9

Which of the following is a false statement regarding the parol evidence rule?
A)It is not limited to spoken words.
B)It is a rule of evidence.
C)It relates to substantive legal issues.
D)It is an amalgamation of different rules and conditions.
E)It applies to writings created at the same time as the written agreement.

Accepted Answer

The parol evidence rule is not a rule of evidence but,rather,relates to substantive legal issues,namely,what constitutes a legally binding agreement and how do we know what the agreement is.

Question 10

Which of the following is not an exception to the parol evidence rule?
A)Contracts that have been subsequently modified
B)Contracts conditioned on orally agreed-on terms
C)Contracts that are not final as they are part written and part oral
D)Contracts with ambiguous terms
E)Contracts that are complete

Accepted Answer

Exceptions to the parol evidence rule pertain to: a)contracts that are subsequently modified; b)contracts conditioned on orally agreed-on terms; c)contracts that are not final as they are part written and part oral; d)contracts with ambiguous terms; e)incomplete contracts; f)contracts with obvious typographical errors; g)voidable or void contracts; and h)evidence of prior dealings or usage of trade.

Question 11

Which of the following is an accurate description of the parol evidence rule?
A)The parol evidence rule states that oral evidence of an agreement made after a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
B)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is admissible when the parties intend the written agreement to be the complete and final version of their agreement.
C)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
D)The parol evidence rule states that oral evidence of an agreement made prior to,but not contemporaneously with,a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.
E)The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties did not intend the written agreement to be the complete and final version of their agreement.

Accepted Answer

The parol evidence rule is a common law rule that specifically addresses the admissibility of oral evidence as it relates to written contracts.The parol evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.

Question 12

Which of the following is a correct statement regarding form requirements for a valid assignment?
A)In order for an assignment to be valid,a UCC 2-301 compliance statement is required.
B)In order for an assignment to be valid,a UCC 4-305 perfection statement is required.
C)In order for an assignment to be valid,a Business Form 2-547 must be executed by the assignor.
D)In order for an assignment to be valid,a Business Form 4-298 must be executed by the obligor (the other party to the original contract who owes a duty to the assignee).
E)No form is required for an assignment to be valid.

Accepted Answer

Legally,there is no required wording to be used or forms to be filled out for assignments to be valid.

Question 13

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?
A)Assignment
B)Rescission
C)Delegation
D)Novation
E)Accord and satisfaction

Accepted Answer

An assignment involves a contracting party's transfer of his or her rights under a contract to a third party.

Question 14

Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?
A)When the only part of the contract left to be fulfilled is the payment.
B)When the sale of goods is involved.
C)When no more than one-half of the contractual duties have been performed.
D)When no more than three-fourths of the contractual duties have been performed.
E)When at least one-third of the contractual duties have been performed.

Accepted Answer

As a general rule,the rights to a contract cannot be assigned when the contract is personal in nature.For a contract to be personal in nature,the obligor must have promised something specific to the person receiving it.Because the subject matter of the contract is personal,a third party cannot legally become the recipient.The one exception occurs when the only part of a contract left to be fulfilled is the payment,because rights to payment can always be assigned.

Question 15

Which of the following is a false statement regarding a condition precedent?
A)When an entire contract is conditioned on something occurring first,that first thing is known as a condition precedent.
B)The parol evidence rule does not apply to evidence of a condition precedent.
C)Evidence of the existence of a condition precedent agreed to orally is inadmissible.
D)A contract is not modified by evidence of the existence of a condition precedent.
E)A contract's enforceability is called into question by evidence of the existence of a condition precedent.

Accepted Answer

Evidence of the existence of a condition precedent agreed to orally is admissible,because the contract is not modified by such evidence; rather,its enforceability is called into question.Because the statute of frauds is concerned primarily with the enforceability of agreements,it logically follows that the parol evidence rule does not apply to evidence of conditions precedent.

Question 16

Which of the following is a contractual party who agrees to do something for the other party?
A)Obligor
B)Obligee
C)Assignor
D)Assignee
E)Delegator

Accepted Answer

Contracts typically involve an agreement between two parties in which both parties agree to do something for the other.In other words,both parties are obligors.

Question 17

Which of the following is true regarding oral assignments?
A)Assignments may not be made orally.
B)The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $5,000.
C)Assignments are not covered by the statute of frauds.
D)The Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $500.
E)The Uniform Commercial Code requires that an assignment of a right to receive goods be in writing when the value of the goods is $500 or more,and that an assignment of a right to receive a service be in writing when the value of the service is $1,000 or more.

Accepted Answer

Although as a general rule assignments may be given orally or in writing,the Uniform Commercial Code requires that assignments be in writing when the amount being assigned is greater than $5,000.

Question 18

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.
A)admission against interest
B)statute of frauds
C)parol evidence
D)admission under oath
E)admission under oath or affirmation

Accepted Answer

A problem arises with a written contract when a party asserts that the writing is in some way deficient.To smooth transactions by limiting the types of evidence admissible to address the written agreement,the courts rely heavily on the parol evidence rule.The parol evidence rule is a common law rule that specifically addresses the admissibility of oral evidence as it relates to written contracts.

Question 19

One way parties can indicate their desire to create an integrated contract is through the use of a(n)________ clause.
A)executory
B)merger
C)adhesion
D)condition subsequent
E)addendum

Accepted Answer

One way parties can indicate their desire to create an integrated contract is through the use of a merger clause.A merger clause explicitly states that the written contract is intended to be the complete and final version of the contract between the parties and that other possible agreements between the parties,besides the one in question,are not part of the final written agreement.

Question 20

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?
A)Parol evidence agreements
B)Integrated contracts
C)Adhesion contracts
D)Bilateral contracts
E)Invitations to negotiate

Accepted Answer

Integrated contracts are written contracts intended to be the complete and final representation of the parties' agreement.The easiest test to determine the admissibility of parol evidence is to check whether the written contract,within the statute of frauds,is an integrated contract.

Quiz 13: Contracts in Writing and Third-Party Contracts

Which of the following statements is false regarding the rights of assignees and assignors?

A(n) ________ clause is a clause parties include in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final,complete version of the agreement.

Sally agrees to mow Paul's yard for $300 for the summer.Paul wishes to assign the contract to his grandmother.Sally objects because Paul's yard is very small while the grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Sally and Paul?

What is a purpose of the parol evidence rule?

What is the term for the third party who receives an assignment of contract rights?

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement?

What is the term for a party to a contract who transfers her rights under the contract to a third party?

Which of the following is a contractual party who agrees to receive something from the other party?

Which of the following is a false statement regarding the parol evidence rule?

Which of the following is not an exception to the parol evidence rule?

Which of the following is an accurate description of the parol evidence rule?

Which of the following is a correct statement regarding form requirements for a valid assignment?

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?

Which of the following is a false statement regarding a condition precedent?

Which of the following is a contractual party who agrees to do something for the other party?

Which of the following is true regarding oral assignments?

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.

One way parties can indicate their desire to create an integrated contract is through the use of a(n) ________ clause.

Which of the following are written contracts intended to be the complete and final representation of the parties' agreement?