Question 1

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Accepted Answer

A)   ​under any circumstances.
B)   ​without continuing to be potentially liable.
C)   ​without Miles's consent.
D)   ​without paying Miles at least one monthly fee.E) A) and B)
F) A) and C)

Question 2

A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

Accepted Answer

A) True 
 B)False

Question 3

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest​

Accepted Answer

A)   ​automatically.
B)   ​if she demonstrates her consent to the promise at Hilda's request.
C)   ​if Indemnity attempts to modify the terms of the contract.
D)   ​on the occurrence of the event for which the insurance was procured.E) C) and D)
F) A) and B)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Carol takes out an insurance policy on her car. Carol can assign her policy to a third party

Accepted Answer

A)   ​under any circumstances.
B)   ​under no circumstances.
C)   ​as long as she does so in writing.
D)   ​if a court approves the assignment.E) A) and D)
F) B) and D)

Question 6

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo­ration. Before either party has performed, rescission of this con­tract requires​

Accepted Answer

A)   ​a mutual agreement to rescind.
B)   ​an accord and satisfaction.
C)   ​a novation.
D)   ​a settlement agreement.E) All of the above
F) A) and C)

Question 7

After a contract is made, a supervening event may make performance impossible and discharge the contract.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  a delegator.
B)  an assignor.
C)  an obligor.
D)  a third party beneficiary.E) B) and C)
F) B) and D)

Question 9

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Accepted Answer

A) True 
 B)False

Question 10

John enters into a contract with Katie’s Coin-op Laundry to move a suite of dryers from one of Katie’s locations to another. John subsequently transfers this duty to Loren. Loren is

Accepted Answer

A)  a delegatee.
B)  an obligee.
C)  an obligor.
D)  an assignee.E) B) and C)
F) A) and D)

Question 11

Rights to receive funds can be assigned.

Accepted Answer

A) True 
 B)False

Question 12

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   ​a delegatee.
B)   ​an intended beneficiary.
C)   ​an incidental beneficiary.
D)   ​an assignor.E) A) and C)
F) B) and C)

Question 14

Building Restoration, Inc. (BRI) , enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

Accepted Answer

A)   ​absolute.
B)   ​complete.
C)   ​material.
D)   ​substantial.E) A) and B)
F) All of the above

Question 15

Alienation is a transfer of land ownership.

Accepted Answer

A) True 
 B)False  True

Question 16

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​

Accepted Answer

A)   ​a donee beneficiary.
B)   ​an incidental beneficiary.
C)   ​an intended beneficiary.
D)   ​an original contracting party.E) None of the above
F) A) and B)

Question 17

Subjective impossibility of performance can discharge a contract.

Accepted Answer

A) True 
 B)False

Question 18

The person to whom rights in a contract are assigned is the assignor.

Accepted Answer

A) True 
 B)False  False

Question 19

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Accepted Answer

A)   ​neither the accord nor the original obligation.
B)   ​the accord only.
C)   ​the accord or the original obligation.
D)   ​the original obligation only.E) All of the above
F) A) and D)

Question 20

A special form is required to create a delegation of duties.

Accepted Answer

A) True 
 B)False  False

Exam 14: Third Party Rights and Discharge

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Correct AnswerverifiedShow Answer

A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

Correct AnswerverifiedShow Answer

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Carol takes out an insurance policy on her car. Carol can assign her policy to a third party

Correct AnswerverifiedShow Answer

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo­ration. Before either party has performed, rescission of this con­tract requires​

Correct AnswerverifiedShow Answer

After a contract is made, a supervening event may make performance impossible and discharge the contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Correct AnswerverifiedShow Answer

John enters into a contract with Katie’s Coin-op Laundry to move a suite of dryers from one of Katie’s locations to another. John subsequently transfers this duty to Loren. Loren is

Correct AnswerverifiedShow Answer

Rights to receive funds can be assigned.

Correct AnswerverifiedShow Answer

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Building Restoration, Inc. (BRI) , enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

Correct AnswerverifiedShow Answer

Alienation is a transfer of land ownership.

Correct AnswerverifiedTrue

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​

Correct AnswerverifiedShow Answer

Subjective impossibility of performance can discharge a contract.

Correct AnswerverifiedShow Answer

The person to whom rights in a contract are assigned is the assignor.

Correct AnswerverifiedFalse

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Correct AnswerverifiedShow Answer

A special form is required to create a delegation of duties.

Correct AnswerverifiedFalse

Correct Answer
verified

Correct Answer
verified

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires

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
True

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on

Correct Answer
verified

Correct Answer
verified
False