Question 1

Which of the following is true regarding Jan's statement to Billy that he had no right to assign the contract?

Accepted Answer

Any nonpersonal duties in a contract can be delegated. For example, delivering goods, mowing a lawn, paying money, and painting a house are all considered nonpersonal duties because they do not require particular skill or expertise and most people could complete them.

Question 2

What would be the most likely result if Fred sues Harry for the $4,000 payment?

Accepted Answer

Even when a contract has an antiassignment clause, either party may still assign his or her right to receive payment.

Question 3

A[n] ______ beneficiary is one who unintentionally gains a benefit from a contract between other parties.

Accepted Answer

When the contracting parties do not intend to benefit someone but unintentionally do so, that third party is an incidental beneficiary.

Question 4

What would be the most likely result if Fred sues Michelle for the $10,000 payment?

Accepted Answer

Duties of a personal nature requiring specific talents cannot be delegated.

Question 5

Creditor beneficiaries can enforce their rights under a contract whenever the contract is _____.

Accepted Answer

Creditor beneficiaries can enforce their rights under a contract whenever the contract is valid.

Question 6

Which of the following is the likely result if Sam sues Betty for the $40 that Trudy owes him for the book?

Accepted Answer

After the delegation, the delegatee is bound to perform.

Question 7

When a donee beneficiary may enforce rights under a contract,it may be done so only against the ____.

Accepted Answer

When a donee beneficiary may enforce rights under a contract, he or she may do so only against the promisor, because the promisee has no duty to the donee beneficiary.

Question 8

What would be the likely result of a lawsuit brought by Richard against Jan to recover the $800?

Accepted Answer

The assignee should always give notice to the obligor as soon as possible after receiving the assignment, because the obligor may satisfy his or her obligations by performing for the assignor until receiving notice of the assignment from the assignee.

Question 9

What was the ruling of the court in the Case Opener involving a lawsuit by fans seeking a refund based upon the Tyson and Holyfield fight being stopped in the third round because Tyson bit off a piece of Holyfield's ear?

Accepted Answer

The fans were incidental beneficiaries.

Question 10

A[n] ______ beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.

Accepted Answer

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

Question 11

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ______ relationship.

Accepted Answer

Donee beneficiaries can enforce their rights to most contracts. However, some jurisdictions do not allow donee beneficiaries to enforce their contractual rights in all situations. For example, the state of New York does not grant them the right to enforce a contract unless they have a familial relationship to the promisee.

Question 12

Which of the following is true regarding an assignee's acceptance of assigned rights?

Accepted Answer

An assignee may decline an assignment if he or she has not legally agreed to it and if he or she declines in a timely fashion after learning about the assignment and its terms.

Question 13

Which of the following would be the likely result if Sam sues Trudy for the $40 she owes him for the book?

Accepted Answer

After making a delegation, the delegator is not relieved of his duty to perform.

Question 14

What would be the most likely result if Belinda sues Michelle for the $10,000 payment?

Accepted Answer

Duties of a personal nature requiring specific talents cannot be delegated.

Question 15

Which of the following references the maturing of rights such that a party can legally act on the rights?

Accepted Answer

Although an intended beneficiary can enforce rights to a contract, they cannot do so until the rights to the contract vest, or mature such that they can legally act on them.

Question 16

Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights?

Accepted Answer

One significant difference between intended and incidental beneficiaries is that incidental beneficiaries maintain no rights to enforce other people's contracts.

Question 17

Which of the following is true regarding factors considered by a court in determining whether a party is an intended or incidental beneficiary?

Accepted Answer

In determining whether a party is an incidental beneficiary, the courts will take a reasonable person approach and ask whether a reasonable person in the position of the party in question would believe the contracting parties intended to benefit him or her. In deciding whether a party is an incidental beneficiary, the court also considers the following: whether performance of the contract is done directly for or to the third party, the third party's ability to control the specifics of performance, and whether the contract directly states that the third party is the benefiting party.

Question 18

A[n] ______ beneficiary is a third party who benefits from a contract in which the promisor agrees to give a gift to the third party.

Accepted Answer

Donee beneficiaries are third parties who benefit from a contract in which the promisor agrees to give a gift to the third party.

Question 19

Which of the following is a consideration of courts in determining whether a person is an incidental or intended beneficiary?

Accepted Answer

In determining whether a party is an incidental beneficiary, the courts will take a reasonable person approach and ask whether a reasonable person in the position of the party in question would believe the contracting parties intended to benefit him or her.

Question 20

Which of the following is true regarding Billy's claim that he had no duty to pick up the paint cans?

Accepted Answer