Question 1

A contract between Drill-Bit Sharpeners,Inc.,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits
A)any assignment.
B)no assignment.
C)only an assignment of contract rights to personal services.
D)only an assignment that would change the obligor's risk.

Accepted Answer

The clause stating that any assignment is "void" ordinarily prohibits any assignment, regardless of the type of assignment or its impact on the obligor's risk or the contract rights to personal services.

Question 2

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is
A)absolved of any liability under the contract.
B)in breach of the contract with Joy.
C)liable to Joy if Leza does not perform.
D)liable to Leza for inducing a prohibited contract.

Accepted Answer

Kris cannot simply assign her obligations under the contract to someone else without Joy's consent. Therefore, Kris remains liable to Joy if Leza does not perform their obligations under the contract.

Question 3

Commercial Shipping,Inc.,and Dock Services Corporation enter into a contract under which Commercial agrees to pay Dock to load Commercial's trucks.Dock transfers its duty to load the trucks to East Harbor Transport Company.Dock is
A)a delegator.
B)an assignor.
C)a payor.
D)a righter.

Accepted Answer

Dock Services Corporation is delegating its duty to load the trucks to East Harbor Transport Company. Therefore, Dock is a delegator.

Question 4

Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month.Jocasta cannot transfer this duty
A)under any circumstances.
B)without continuing to be potentially liable.
C)without Kevin's consent.
D)without paying Kevin at least one monthly fee.

Accepted Answer

The answer of Jocasta contracts to provide lawn-mowing services to...

Question 5

Parsley,a world-famous chef,signs a contract to give lessons in French cooking to Curry.Parsley wants to transfer his duties under the contract to Relish,the operator of a hot dog concession.The transfer is
A)valid because the performance required is of a nonpersonal nature.
B)valid if Relish is a highly regarded vendor.
C)not valid because performance depends on Parsley's personal skills.
D)not valid if Curry does not hold Relish in high regard.

Accepted Answer

The transfer is not valid because the performance required depends on Parsley's personal skills. Cooking lessons are inherently personal in nature and require the unique skills and expertise of the chef. Therefore, it cannot be transferred to another party.

Question 6

Nashville Harmonies Inc.and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her.Taylor transfers her right to payment under the contract to Omni Entertainment Agency.In the transfer of rights,Taylor is
A)a delegator.
B)an assignor.
C)an obligor.
D)an alien.

Accepted Answer

Taylor is transferring her rights to payment under the contract to Omni Entertainment Agency, making her an assignor.

Question 7

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer
A)is prohibited.
B)may be oral or written.
C)must be implied.
D)must be in writing.

Accepted Answer

The transfer of the ownership of the house from Uri to Val is a transfer of real property, which must be in writing to be enforceable under the Statute of Frauds. Therefore, the transfer must be in writing to be valid. Choice A is incorrect because there is no prohibition on transferring the ownership of the house from Uri to Val. Choice B is incorrect because a transfer of real property must be in writing. Choice C is incorrect because the transfer of the ownership of the house cannot be implied, as it must be explicitly stated in a written document.

Question 8

Vernon contracts with Whitney to provide concierge services to Yerba Buena Hotel.This is
A)a delegation.
B)an assignment.
C)a third party beneficiary contract.
D)a novation.

Accepted Answer

The answer of Vernon contracts with Whitney to provide concierge...

Question 9

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son,Nero,as the beneficiary.This is
A)a delegation.
B)an assignment.
C)a third party incidental beneficiary contract.
D)a third party intended beneficiary contract.

Accepted Answer

Lois has created a third party intended beneficiary contract by naming Nero as the beneficiary in her life insurance policy. This means that Nero has a right to the benefits of the policy upon Lois's death, and the contract was entered into with the intention of benefiting Nero specifically.

Question 10

Floyd and Grady enter into a contract by which Floyd promises to deliver fertilizer to Grady.Floyd subsequently transfers this duty to Hiram.Floyd is
A)a delegatee and an obligee.
B)a delegatee but not an obligee.
C)a delegator and an obligor.
D)a delegator but not an obligor.

Accepted Answer

Floyd is the delegator because he transferred his duty to Hiram. He is also an obligor because he promised to deliver fertilizer to Grady. Therefore, the correct choice is C. A is incorrect because Floyd is not an obligee in this situation. B is partially correct because Floyd is a delegatee, but he is also an obligor. D is incorrect because Floyd is an obligor in this situation.

Question 11

Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio.When Rico's schedule conflicts,he asks Oliver to perform his duties at the closing.This transfer of duties is
A)a delegation.
B)an assignment.
C)prohibited.
D)a negotiation.

Accepted Answer

The transfer of duties from Rico to Oliver is a delegation, which is permissible under contract law as long as Miley consents to it.

Question 12

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is
A)an assignee.
B)an intended beneficiary.
C)an incidental beneficiary.
D)a delegatee.

Accepted Answer

Gladys is an intended beneficiary as the agreement between Esther and Faisal involves a promise to pay a preexisting debt owed by Esther to Gladys. The intention is clearly to benefit Gladys by fulfilling Esther's debt through this exchange.

Question 13

Fiorella and Midwest Agri-Ship,Inc.,enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest.Due to schedule conflicts,Midwest contacts Hybrid Crop Transport Company,to which Midwest "assigns all rights under the contract." This transfer is
A)an assignment and a delegation.
B)an alienation and a negotiation.
C)an obligation and a cancelation.
D)prohibited.

Accepted Answer

This is an example of an assignment of the contract by Midwest to Hybrid Crop Transport Company. In this assignment, Midwest is transferring all of its rights under the contract to Hybrid Crop Transport Company. This transfer of rights includes the right to transport the silo of corn and the right to receive payment from Fiorella. This is an assignment because Midwest is transferring its rights to another party. It is also a delegation because Midwest is delegating its duty to transport the corn to Hybrid Crop Transport Company.

Question 14

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer generally
A)cannot be prohibited.
B)cannot be allowed.
C)can be prevented.
D)can be circumvented.

Accepted Answer

The transfer of rights in a contract, known as assignment, is generally allowed unless specifically prohibited by the contract or if it materially changes the obligations of the other party.

Question 15

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent
A)at any time.
B)at no time.
C)only after Jen's rights have vested.
D)only before Jen's rights have vested.

Accepted Answer

The answer of Jen is a third party beneficiary under...

Question 16

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves
A)a right to receive payment.
B)a right to Ben's services.
C)rights under Ivy's insurance policy against Ben's failing to perform.
D)a right whose transfer is otherwise expressly prohibited by statute.

Accepted Answer

A contract right to receive payment can be transferred to a third party, as long as the contract does not expressly prohibit it. The other choices do not involve a right that can be transferred without a breach of the contract.

Question 17

Manny wants to transfer his right to buy $400 of pistachio nuts under a contract with Nila to Opie.To ensure that the transfer of the right is valid,Manny must
A)designate Opie as a "delegate."
B)file a notice of assignment in the public records.
C)tell Nila that he has no right and no liability under the contract.
D)none of the choices.

Accepted Answer

Manny must assign his rights under the contract to Opie. None of the choices provided are necessary for a valid assignment of rights.

Question 18

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him.This is
A)a delegation.
B)an assignment.
C)a third party beneficiary contract.
D)an alienation.

Accepted Answer

The transfer of ownership from Phaedra and Raul to Sheldon is an example of alienation, which refers to the act of transferring ownership or property rights to someone else. Choices A, B, and C all involve a third party, but in this scenario, there is no delegation or assignment of duties or benefits to a third party beneficiary.

Question 19

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly.Reba later transfers her duty under the contract to Troy.Reba is
A)a delegator and an obligor.
B)a delegator only.
C)an obligor only.
D)none of the choices.

Accepted Answer

Reba is a delegator because she transferred her duty under the contract to Troy, and she is still an obligor because she made the promise to deliver the brochures to Sly in the first place. Therefore, option A is the best choice.

Question 20

Rural Development Corporation (RDC)and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is
A)a delegatee.
B)an assignee.
C)an obligee.
D)a prohibitee.

Accepted Answer

The answer of Rural Development Corporation (RDC)and Sid enter into...

Quiz 17: Third Party Rights

A contract between Drill-Bit Sharpeners,Inc.,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris.When Kris's schedule conflicts,she contacts Leza,to whom Kris "assigns all rights under the contract." Kris is

Commercial Shipping,Inc.,and Dock Services Corporation enter into a contract under which Commercial agrees to pay Dock to load Commercial's trucks.Dock transfers its duty to load the trucks to East Harbor Transport Company.Dock is

Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month.Jocasta cannot transfer this duty

Parsley,a world-famous chef,signs a contract to give lessons in French cooking to Curry.Parsley wants to transfer his duties under the contract to Relish,the operator of a hot dog concession.The transfer is

Nashville Harmonies Inc.and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her.Taylor transfers her right to payment under the contract to Omni Entertainment Agency.In the transfer of rights,Taylor is

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer

Vernon contracts with Whitney to provide concierge services to Yerba Buena Hotel.This is

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son,Nero,as the beneficiary.This is

Floyd and Grady enter into a contract by which Floyd promises to deliver fertilizer to Grady.Floyd subsequently transfers this duty to Hiram.Floyd is

Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio.When Rico's schedule conflicts,he asks Oliver to perform his duties at the closing.This transfer of duties is

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is

Fiorella and Midwest Agri-Ship,Inc.,enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest.Due to schedule conflicts,Midwest contacts Hybrid Crop Transport Company,to which Midwest "assigns all rights under the contract." This transfer is

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer generally

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment.The contract expressly prohibits any transfer of rights.A contract right may be transferred,however,if the transfer involves

Manny wants to transfer his right to buy $400 of pistachio nuts under a contract with Nila to Opie.To ensure that the transfer of the right is valid,Manny must

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him.This is

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly.Reba later transfers her duty under the contract to Troy.Reba is

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid.Sid transfers his duty to log the tract under the contract to Timber Logging Company.Timber is