Question 1

Under the Restatement, if there are successive assignments of the same right:

Accepted Answer

A)   the first assignee to notify the obligor prevails.
B)   the latest assignee is usually entitled to the assigned right.
C)   a prior assignee is entitled to the assigned right to the exclusion of a subsequent assignee in most circumstances.
D)   a subsequent assignee is entitled to the assigned right unless a prior assignee gave value and obtains either a judgment against the obligor or a new contract with the obligor.

Question 2

Under Article 2 of the UCC, a right to damages for breach of the whole contract can be assigned despite a contractual provision to the contrary.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following involves a creditor beneficiary relationship?

Accepted Answer

A)   A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy.
B)   A contract between an employer and a union representing the employees which is made for the benefit of the employees.
C)   A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a stated rate.
D)   A contract between a governmental unit and business for services to be rendered to area citizens.

Question 4

All but which of the following is true about a delegation of duties?

Accepted Answer

A)   When the delegatee assumes the delegated duty, both the delegator and the delegatee are liable for performance of the contractual duty to the obligee.
B)   Contractual duties are generally delegable.
C)   The courts will examine an assignment more closely than a delegation.
D)   A delegation will not be permitted if the nature of the duties are personal in that the obligee has a substantial interest in having the delegator perform the contract.

Question 5

A party delegating his duty to a third party is known as a delegator.

Accepted Answer

A) True 
 B)False

Question 6

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Accepted Answer

A)   a donee beneficiary.
B)   a transferee.
C)   a delegatee.
D)   an assignee.

Question 7

Name four types of contract rights that are non-assignable.

Accepted Answer

Non-assignable contract rights include t...

Question 8

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Accepted Answer

A)   Brad's death has no effect on the assignment.
B)   the assignment is terminated upon Brad's death.
C)   the signing of the statement makes the assignment irrevocable.
D)   the assignment is invalid, because it is gratuitous.

Question 9

Unless otherwise provided by statute, an assignment may be made orally.

Accepted Answer

A) True 
 B)False

Question 10

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Accepted Answer

A) True 
 B)False

Question 11

Mike transfers to Dean his right to receive a payment of $850 due to him from Opal. Dean is the assignee.

Accepted Answer

A) True 
 B)False

Question 12

The UCC prohibits assignments of $5,000 or more.

Accepted Answer

A) True 
 B)False

Question 13

The obligor need not receive notice for an assignment to be valid.

Accepted Answer

A) True 
 B)False

Question 14

Will wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n) :

Accepted Answer

A)   incidental beneficiary.
B)   creditor beneficiary.
C)   donee beneficiary.
D)   assignee.

Question 15

Richard owes a duty to Carla and Richard delegates the duty to Antonella. Antonella :

Accepted Answer

A)   is not obligated to either Richard or Carla to perform the duty unless Antonella agrees to do so.
B)   becomes liable for nonperformance to both Richard and Carla only if she promises both Richard and Carla that she will perform Richard's duty.
C)   cannot create contractual rights in Carla .
D)   is liable only to Richard because that is who she has a contract with.

Question 16

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Accepted Answer

A)   Wholesalers, when the buyer of a business promises the seller that he will pay outstanding debts to wholesalers who have supplied inventory for the business.
B)   Workers, where a contractor agrees to post a performance bond to assure payment of workers and material suppliers.
C)   A debtor, where a new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.
D)   A doctor, when an automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

Question 17

Which of the following is NOT true concerning the requirements for an effective assignment?

Accepted Answer

A)   The assignment must be voluntary.
B)   Consideration is required.
C)   There must be an intention to make the assignee the owner of the right.
D)   The assignment may be either written or oral.

Question 18

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Accepted Answer

A) True 
 B)False

Question 19

Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Accepted Answer

A) True 
 B)False

Question 20

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Accepted Answer

A) True 
 B)False

Exam 16: Third Parties to Contracts

Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Correct Answer
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Unless otherwise provided by statute, an assignment may be made orally.

Correct Answer
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Correct Answer
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Name four types of contract rights that are non-assignable.

Correct Answer
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Non-assignable contract rights include t...
View Answer

Under Article 2 of the UCC, a right to damages for breach of the whole contract can be assigned despite a contractual provision to the contrary.

Correct Answer
verified

Under the Restatement, if there are successive assignments of the same right:

Correct Answer
verified

A party delegating his duty to a third party is known as a delegator.

Correct Answer
verified

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Correct Answer
verified

Which of the following involves a creditor beneficiary relationship?

Correct Answer
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Which of the following is NOT true concerning the requirements for an effective assignment?

Correct Answer
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The obligor need not receive notice for an assignment to be valid.

Correct Answer
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Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Correct Answer
verified

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Correct Answer
verified

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Correct Answer
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Mike transfers to Dean his right to receive a payment of $850 due to him from Opal. Dean is the assignee.

Correct Answer
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When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Correct Answer
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All but which of the following is true about a delegation of duties?

Correct Answer
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Richard owes a duty to Carla and Richard delegates the duty to Antonella. Antonella :

Correct Answer
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The UCC prohibits assignments of $5,000 or more.

Correct Answer
verified

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Correct Answer
verified

Exam 16: Third Parties to Contracts

Dena purchases a life insurance policy naming her adult son as beneficiary. His rights as a donee beneficiary vest at the time she purchases the policy, even though the policy permits her to cancel the policy or change beneficiaries.

Correct AnswerverifiedShow Answer

Unless otherwise provided by statute, an assignment may be made orally.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Name four types of contract rights that are non-assignable.

Correct AnswerverifiedNon-assignable contract rights include t...View AnswerShow Answer

Under Article 2 of the UCC, a right to damages for breach of the whole contract can be assigned despite a contractual provision to the contrary.

Correct AnswerverifiedShow Answer

Under the Restatement, if there are successive assignments of the same right:

Correct AnswerverifiedShow Answer

A party delegating his duty to a third party is known as a delegator.

Correct AnswerverifiedShow Answer

Mary goes to her stockbroker, purchases 30 shares of P & G stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's gift, Warren becomes:

Correct AnswerverifiedShow Answer

Which of the following involves a creditor beneficiary relationship?

Correct AnswerverifiedShow Answer

Which of the following is NOT true concerning the requirements for an effective assignment?

Correct AnswerverifiedShow Answer

The obligor need not receive notice for an assignment to be valid.

Correct AnswerverifiedShow Answer

Hiram, when he assigns to Tim his right to receive the next four rent payments on an apartment he owns, warrants that the tenant will make the assigned payments to Tim.

Correct AnswerverifiedShow Answer

Anita owes Brad $75,000. Brad signs a written statement granting Cal a gratuitous assignment of his rights from Anita. If Brad dies prior to delivering the statement to Cal:

Correct AnswerverifiedShow Answer

In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?

Correct AnswerverifiedShow Answer

Mike transfers to Dean his right to receive a payment of $850 due to him from Opal. Dean is the assignee.

Correct AnswerverifiedShow Answer

When the assignee gives consideration in exchange for an assignment, there is a contract between the assignor and the assignee that prevents the assignor from revoking the assignment without the assent of the assignee.

Correct AnswerverifiedShow Answer

All but which of the following is true about a delegation of duties?

Correct AnswerverifiedShow Answer

Richard owes a duty to Carla and Richard delegates the duty to Antonella. Antonella :

Correct AnswerverifiedShow Answer

The UCC prohibits assignments of $5,000 or more.

Correct AnswerverifiedShow Answer

In England and in a minority of states, the first of two or more assignees to give notice to the obligor is entitled to the assigned performance.

Correct AnswerverifiedShow Answer

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Non-assignable contract rights include t...
View Answer

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