Question 1

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Accepted Answer

A) True 
 B)False

Question 2

Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is

Accepted Answer

A)   a delegation .
B)   an assignment.
C)   a third party beneficiary contract.
D)   prohibited.E) B) and D)
F) C) and D)

Question 3

Delegation is prohibited when the duties are personal in nature.

Accepted Answer

A) True 
 B)False

Question 4

An assignee obtains only those rights that the assignor originally had.

Accepted Answer

A) True 
 B)False

Question 5

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

Accepted Answer

A)   Miranda.
B)   New Credit.
C)   Lyle.
D)   any customer of Miranda's.E) C) and D)
F) A) and C)

Question 6

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue

Accepted Answer

A)   no one .
B)   Jake only.
C)   Leon only.
D)   Jake or Leon.E) None of the above
F) All of the above

Question 7

Music Masters Inc. and Nina enter into a contract for Nina to write a dozen songs for which Music Masters agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, the assignor is

Accepted Answer

A)   Music Masters .
B)   Nina.
C)   Omni Artists.
D)   both Nina and Omni Artists.E) A) and D)
F) B) and D)

Question 8

An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested.

Accepted Answer

A) True 
 B)False

Question 9

The party receiving the assignment is the assignee.

Accepted Answer

A) True 
 B)False

Question 10

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

Accepted Answer

A) True 
 B)False

Question 11

Harry assigns his rights under a contract with Irma to his college roommate, Jake. Neither Harry nor Jake notifies Irma of the assignment. The assignment

Accepted Answer

A)   will not be effective until notice is given to Irma.
B)   will become effective after thirty days even if no notice is given to Irma.
C)   is immediately effective.
D)   is invalid.E) All of the above
F) B) and C)

Question 12

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Accepted Answer

A) True 
 B)False

Exam 15: Third Party Rights

Delegation is prohibited when the duties are personal in nature.

Correct Answer
verified

An assignee obtains only those rights that the assignor originally had.

Correct Answer
verified

An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested.

Correct Answer
verified

Music Masters Inc. and Nina enter into a contract for Nina to write a dozen songs for which Music Masters agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, the assignor is

Correct Answer
verified

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

Correct Answer
verified

Harry assigns his rights under a contract with Irma to his college roommate, Jake. Neither Harry nor Jake notifies Irma of the assignment. The assignment

Correct Answer
verified

The party receiving the assignment is the assignee.

Correct Answer
verified

Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is

Correct Answer
verified

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Correct Answer
verified

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

Correct Answer
verified

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Correct Answer
verified

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue

Correct Answer
verified

Exam 15: Third Party Rights

Delegation is prohibited when the duties are personal in nature.

Correct AnswerverifiedShow Answer

An assignee obtains only those rights that the assignor originally had.

Correct AnswerverifiedShow Answer

An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested.

Correct AnswerverifiedShow Answer

Music Masters Inc. and Nina enter into a contract for Nina to write a dozen songs for which Music Masters agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, the assignor is

Correct AnswerverifiedShow Answer

The rights of a third party beneficiary under a contract vest if the third party materially changes his or her position in justifiable reliance on the promise.

Correct AnswerverifiedShow Answer

Harry assigns his rights under a contract with Irma to his college roommate, Jake. Neither Harry nor Jake notifies Irma of the assignment. The assignment

Correct AnswerverifiedShow Answer

The party receiving the assignment is the assignee.

Correct AnswerverifiedShow Answer

Faye makes and sells furniture. Faye and Glen enter into a contract for the delivery of Faye's products to Glen's Gear retail locations for which he agrees to pay the invoiced price. Faye transfers her right to payment under the contract to Haulers Trucking Company. This transfer is

Correct AnswerverifiedShow Answer

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

Correct AnswerverifiedShow Answer

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is

Correct AnswerverifiedShow Answer

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Correct AnswerverifiedShow Answer

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified