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Exam 18: Third Party Rights

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Question 31

True/False

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All rights can be assigned.

A) True
B) False

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verified

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Question 32

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

A) True
B) False

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Question 33

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In an assignment,the assignee obtains only those rights that the assignor had.

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts,he asks Rachel to do the cutting and trimming. This transfer of duties is

Pam borrows $5,000 from Quality Auto Sales to buy a car. When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency. Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed. Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legiti-mately refuse to pay Rapid? Explain.

Business Loans,LLC,is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries,Business Loans is

Will owes Jenny $1,000. Brad owes Will $1,000. Will unconditionally assigns his rights to Jenny. Will's right to the $1,000 is then

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

In an assignment,the party assigning the rights to a third party is the assignee.

A contract between Laser Maintenance,Inc.,and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Phillip assigns his rights under a contract with Maria to his college roommate,John. Neither Phillip nor John notifies Maria of the assignment. The assignment

Wilma owes Jill $5,000. Jill assigns the claim to the funds to Andrew. Jill

Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can modify or rescind their contract without Mai's consent

A transfer of contract rights to a third party is an assignment.

An "assignment of all rights" creates an assignment of rights but not a delegation of duties.

An assignment of rights in real estate often cannot be prohibited.

In most cases,a contract that prohibits its assignment can still be assigned.

Both intended and incidental beneficiaries acquire legal rights in a contract.

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies. -Refer to Fact Pattern 18-1.Halfway through the project,Four-Square refuses to finish the job. The contract can be enforced against Four-Square by

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is