Question 1

Which of the following 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?
A)The first-assignment-in-time rule
B)The last-assignment-in-time rule
C)The English rule
D)The French rule
E)The race-to-the-courthouse rule

Accepted Answer

When an assignor assigns two or more parties the same right,confusion arises about which party has the right to the contract.To address such a situation,a minority of states have adopted the English rule,which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract.Particularly when living in a state using the English rule,parties are well advised to give notice of assignments to ensure that they maintain their assigned rights.

Question 2

Which of the following is a correct statement regarding the rights of an intended beneficiary?
A)Intended beneficiaries may enforce their rights to a contract when both parties to the contract intended for the third party to benefit.
B)Intended beneficiaries may enforce their rights to a contract if only one of the parties to the contract intended for the third party to benefit.
C)Intended beneficiaries may enforce their rights to a contract,even if the parties to the contract did not specifically (in other words,purposefully)intend for the third party to benefit.
D)Intended beneficiaries have no rights under a contract.
E)Intended beneficiaries have the same rights under a contract as incidental beneficiaries.

Accepted Answer

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.Intended beneficiaries may enforce their rights to a contract when both parties to the contract intended for the third party to benefit.

Question 3

Which of the following states 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?
A)The first-assignment-in-time rule
B)The last-assignment-in-time rule
C)The English rule
D)The French rule
E)The race-to-the-courthouse rule

Accepted Answer

When an assignor assigns two or more parties the same right,confusion arises about which party has the right to the contract.To address such a situation,most states use the first-assignment-in-time-rule,which states that the first party granted the assignment is the party correctly entitled to the contractual right.

Question 4

In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the ________ beneficiary of the contract.
A)incidental
B)direct,primary,or express
C)direct,primary,or incidental
D)direct or primary,but not express
E)primary or express,but not direct

Accepted Answer

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.Intended beneficiaries may enforce their rights to a contract when both parties to the contract intended for the third party to benefit.In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the direct,primary,or express beneficiary of the contract.

Question 5

A third party who is not part of an original contract but who is transferred a duty to perform set forth in the original contract is called a(n)________.
A)delegatee
B)delegator
C)assignor
D)assignee
E)transferor

Accepted Answer

A delegatee is a party to a contract who receives a duty to perform transferred by a party to the original contract (the delegator).

Question 6

Which of the following is determinative regarding the effectiveness of an anti-assignment clause?
A)Common law in the jurisdiction where the anti-assignment clause was executed
B)The wording of the anti-assignment clause
C)Statutory law in the jurisdiction where the anti-assignment clause was executed
D)The Restatement of the Law of Contracts
E)The Restatement (Second)of the Law of Contracts

Accepted Answer

When parties include an anti-assignment clause in their contract,the parties are attempting to limit their ability to assign their rights under the contract.However,the wording of the anti-assignment clause is determinative regarding the effectiveness of the clause.That is,if worded improperly or ambiguously,the clause does not effectively limit assignments

Question 7

A(n)________ beneficiary is a third party who benefits from a contract in which a promisor agrees to give a gift to a third party.
A)creditor
B)donee
C)incidental
D)consequential
E)putative

Accepted Answer

There are two types of intended beneficiaries: creditor beneficiaries and donee beneficiaries.Donee beneficiaries are third parties who benefit from a contract in which a promisor agrees to give a gift to the third party.

Question 8

Which of the following is/are a type of intended beneficiary?
A)Creditor
B)Donee
C)Incidental
D)Creditor,donee,and incidental
E)Creditor and donee,but not incidental

Accepted Answer

There are two types of intended beneficiaries: creditor beneficiaries and donee beneficiaries.

Question 9

Bill contracts with Judy to wash her car and then delegates the duty to Paul.Paul fails to wash the car.Which of the following is true regarding Bill's duty to Judy,if any?
A)Bill has no duty to Judy so long as she did not expressly object to the delegation.
B)Bill has no duty to Judy,regardless of whether she objected to the delegation.
C)Bill continues to be contractually bound to Judy to ensure that her car gets washed.
D)Bill continues to be contractually bound to Judy to ensure that her car gets washed,but only if the contract expressly prohibited delegation.
E)Bill continues to be contractually bound to Judy to ensure that her car gets washed,unless he already paid Paul for the job.

Accepted Answer

One important distinction between assignments and delegations involves the rights of the transferring party-the assignor or the delegator.In assignments,after the assignment is made,the assignor has no right left to the original contract.Conversely,with delegations,the delegator is not relieved of his duty to perform by making a delegation.If the delegatee fails to fulfill the contract,the delegator is still liable to the obligee for fulfillment of the contract.

Question 10

Which of the following is a duty that typically cannot be delegated to a third party?
A)Mowing a yard
B)Payment of money owed
C)Delivering goods
D)Painting a house
E)Painting a portrait

Accepted Answer

A duty that cannot be delegated is any duty of a personal nature.A duty is personal in nature when it requires the specific talents,skills,or expertise of the obligor,such as painting a portrait.Although personal duties typically cannot be delegated,any non-personal duties in a contract can be delegated.For example,the delivering of goods,mowing of one's lawn,paying of money,or painting of a house are all considered non-personal duties.These duties are non-personal because they do not require particular skill or expertise and,therefore,can be completed by most people.

Question 11

A(n)________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.
A)third-party beneficiary contract
B)accord and satisfaction
C)novation
D)assignment
E)delegation

Accepted Answer

A third-party beneficiary contract is created when two parties enter into a contract with the intended purpose of benefiting a third party.

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.
A)promisee
B)principal
C)assignor
D)assignee
E)delegator

Accepted Answer

A third-party beneficiary contract is created when two parties enter into a contract with the intended purpose of benefiting a third party.The promisee 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.

Question 13

Lawrence v.Fox,a case referenced in the textbook,was one of the earliest cases to recognize the rights of:
A)tenants to sue their landlords
B)delegators to sue delegatees
C)third parties to sue promisors
D)creditors to sue debitors
E)obligors to sue obligees

Accepted Answer

In Lawrence v.Fox,the Court of Appeals of New York upheld the right of third parties to sue promisors to have agreements enforced.It was one of the first cases to do so.

Question 14

A party to a contract who transfers her duty to perform to a third party who is not part of the original contract is called a(n)________.
A)delegatee
B)delegator
C)assignor
D)assignee
E)agent

Accepted Answer

A delegator is a party to a contract who transfers her duty to perform to a third party who is not part of the original contract.

Question 15

How do courts generally rule in cases involving ambiguous contract language that makes it unclear what is being assigned or delegated?
A)When ambiguous language is used,the court usually considers the assignment to be of both rights and duties.
B)When ambiguous language is used,the court usually considers the assignment to be of rights but not duties.
C)When ambiguous language is used,the court usually considers the assignment to be of duties but not rights.
D)When ambiguous language is used,the court usually considers the assignment to be void.
E)When ambiguous language is used,the court usually considers the assignment to be voidable.

Accepted Answer

Frequently,contracts contain ambiguous language that makes it unclear what is being assigned or delegated.Examples of ambiguous language are "I assign the contract" or "I assign all of my rights under the contract." When a court cannot clearly tell what the parties intended,the court usually considers the assignment to be both of rights and duties.In other words,when ambiguous language is used,the court considers that the assignor has assigned his rights and delegated any duties he had under the contract.Doing so removes any right the assignor had to collect under the contract,but he is still liable to the obligee for any duties the delegatee,who is also the assignee,fails to perform.

Question 16

Which of the following is most accurate regarding what may be assigned even in the presence of an anti-assignment clause?
A)Assignments made by operation of law.
B)Assignments for the right to receive monetary payments.
C)Assignments for the right to receive damages for a breach of contract to sell goods or services.
D)Assignments made by operation of law and assignments for the right to receive monetary payments,but not assignments for the right to receive damages for a breach of contract to sell goods or services.
E)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.

Accepted Answer

Even in the presence of an anti-assignment clause,there are exceptions in which assignments can still be made including 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.

Question 17

A(n)________ beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.
A)creditor
B)donee
C)incidental
D)promised
E)avowed

Accepted Answer

There are two types of intended beneficiaries: creditor beneficiaries and donee beneficiaries.A creditor beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt

Question 18

A(n)________ occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract.
A)novation
B)assignment
C)delegation
D)substantial performance
E)agency

Accepted Answer

A delegation occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract.Whereas assignments transfer rights to a contract,delegations transfer duties.

Question 19

At what point are assignments valid?
A)Immediately,regardless of notice
B)One day (twenty-four hours)after the assignment is made
C)Two days (forty-eight hours)after the assignment is made
D)One day (twenty-four hours)after notice of the assignment is given
E)Three days (seventy-two hours)after notice of the assignment is given

Accepted Answer

Assignments are effective immediately,regardless of notice.

Question 20

Although an intended beneficiary can enforce her rights to a contract,she cannot do so until her rights to the contract ________.
A)divest
B)bifurcate
C)perfect
D)vest
E)amortize

Accepted Answer

Although an intended beneficiary can enforce her rights to a contract,she cannot do so until her rights to the contract vest; that is,until the rights mature so that a party can legally act on the rights.

Quiz 13: Contracts in Writing and Third-Party Contracts

Which of the following 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?

Which of the following is a correct statement regarding the rights of an intended beneficiary?

Which of the following states 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?

In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the ________ beneficiary of the contract.

A third party who is not part of an original contract but who is transferred a duty to perform set forth in the original contract is called a(n) ________.

Which of the following is determinative regarding the effectiveness of an anti-assignment clause?

A(n) ________ beneficiary is a third party who benefits from a contract in which a promisor agrees to give a gift to a third party.

Which of the following is/are a type of intended beneficiary?

Bill contracts with Judy to wash her car and then delegates the duty to Paul.Paul fails to wash the car.Which of the following is true regarding Bill's duty to Judy,if any?

Which of the following is a duty that typically cannot be delegated to a third party?

A(n) ________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.

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.

Lawrence v.Fox,a case referenced in the textbook,was one of the earliest cases to recognize the rights of:

A party to a contract who transfers her duty to perform to a third party who is not part of the original contract is called a(n) ________.

How do courts generally rule in cases involving ambiguous contract language that makes it unclear what is being assigned or delegated?

Which of the following is most accurate regarding what may be assigned even in the presence of an anti-assignment clause?

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

A(n) ________ occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract.

At what point are assignments valid?

Although an intended beneficiary can enforce her rights to a contract,she cannot do so until her rights to the contract ________.