Deck 12: Transfer of Contract Rights and Duties

Question 1

Nonpersonal rights may be transferred without permission.

Answer 1

True

Question 2

An assignment is best described as a transfer of

A) an obligation.
B) a right.
C) a personal responsibility.
D) all of these.

Answer 2

B

Question 3

Rights under a contract are legally transferred by delegation.

Answer 3

False

Question 4

In a contract requiring the repayment of money, the borrower is known as the

A) assignor.
B) assignee.
C) administrator.
D) obligor.

Question 5

The party to whom rights under a contract are transferred is called the obligor.

Question 6

An assignment has no effect until the obligor is notified.

Question 7

According to the modern view an assignment of rights implies a delegation of duties unless there is language to the contrary.

Question 8

After being notified of an assignment, the obligor must perform for the assignee.

Question 9

When obligations under a contract are transferred, the delegating party is relieved of any further obligations under the contract.

Question 10

Rights and duties under a contract can legally be transferred to another person.

Question 11

Full performance before being notified of an assignment releases the obligor from any legal obligation to the assignee.

Question 12

Of the following, those that are assignable are

A) royalties on books.
B) accounts receivable.
C) rights to the delivery of goods.
D) all of these.

Question 13

If a contract is required to be in writing, an assignment of that contract must also be in writing.

Question 14

Personal obligations may be transferred without permission.

Question 15

Another name for the assignor is the obligor.

Question 16

An assignment must always be in writing.

Question 17

Clauses in contracts prohibiting assignments and delegations are invalid.

Question 18

One who transfers rights under a contract is

A) the assignor.
B) the assignee.
C) the obligor.
D) none of these.

Question 19

Conrad, an accountant, who performed tax services for Glenn, a small business owner, earned a $5,000 fee over a three-month period. Conrad then assigned this fee to her bank to apply toward a loan. Based on this information, which of the following statements is correct?

A) Legally, Conrad's claim is not assignable.
B) Only claims other than money are assignable.
C) Conrad's right to the $5,000 fee is assignable because it involves a claim for money.
D) Conrad's right to collect $5,000 is not assignable without the bank's permission.

Question 20

When parties enter into a contract, they acquire rights and assume obligations.

Question 21

An example of a contract duty that may be delegated to another person is a

A) singer's duty to sing on a TV show.
B) seller's duty to deliver twenty tons of coal at a set price.
C) surgeon's duty to perform a throat operation.
D) painter's duty to paint a portrait.

Question 22

Some states place ____________________ on assignments.

Question 23

Bronson entered into a contract with Crane to have some electrical work done. Crane later delegated the work to Frank, another licensed electrician. Which of the following statements is true?

A) Crane cannot legally delegate his contract obligations.
B) Crane is still responsible for making sure the obligation is carried out.
C) Crane can no longer be held liable if the contract is breached.
D) The contract is automatically terminated.

Question 24

Duties under a contract are transferred by ____________________.

Question 25

A contract is not assignable if

A) the assignment is not in writing.
B) the assignment was made as security for a debt.
C) the obligor fails to notify the assignee.
D) none of these.

Question 26

A delegation is

A) a transfer of contractual rights to a third party.
B) a gift transferred to a third party in error.
C) a transfer of duties by operation of law.
D) none of the these.

Question 27

Naples, a well-known house painter, was contracted to paint Black's house white, its original color. The contract had no provision prohibiting Naples from delegating his duty under the contract. If Naples delegates his duty to paint Black's house to Knoble, an equally good painter,

A) Black may refuse to accept performance by Knoble.
B) Naples is in breach of contract.
C) Knoble is in breach of contract.
D) Black is required to accept performance by Knoble.

Question 28

A contract right that may not be assigned is the right to

A) collect money.
B) an attorney's services.
C) the damages awarded for a breach of contract.
D) receive standard merchandise.

Question 29

Retna purchased a new car from Brandy Motors and agreed to pay for it in monthly payments over a three-year period. Six months after purchasing the car, Retna ran into financial difficulties and could not afford to keep the car. She sold the car to Banks, who agreed to continue making the monthly payments until the car was paid off. If Banks fails to make payments as agreed, the party responsible for these payments is

A) nobody.
B) Retna.
C) the car manufacturer.
D) Brandy Motors.

Question 30

Contract rights may be ____________________ to a third party.

Question 31

Which of the following statements is true?

A) The assignee acquires the same rights as the assignor.
B) The right to work for someone cannot be assigned without permission.
C) An assignment usually requires no special form.
D) All of these.

Question 32

Plante owed Premo Oil Company $350. Premo Oil Company assigned its right to the debt to Budget Finance Company on March 10. On March 11, Plante paid Premo Oil Company $200. On March 14, Plante received notification of the assignment by mail. When Budget Finance attempted to collect the $350, Plante refused to pay more than $150. Must Plante pay Budget Finance Company $350?

A) Yes; rights to money are assignable and are binding as soon as the assignment agreement is made.
B) Yes; rights to money are assignable and are binding as soon as the assignment agreement is recorded in the proper office.
C) No; rights to money are assignable but are not binding until the debtor agrees to the assignment.
D) No; rights to money are assignable but are not binding until the debtor is properly notified of the assignment.

Question 33

Jason, a golf pro, signed a one-year contract with the owner of a private country club as a golf instructor. Three months after Jason started work, the owner of the club sold out to Curry. The owner also assigned the remaining nine months of Jason's contract to Curry. Would Jason legally be required to work for Curry?

A) Yes, because a contract had been signed by Curry and the owner of the private club.
B) Yes, because Jason had only nine months left on his contract.
C) No, not unless Jason consented to the assignment.
D) No, not unless the private club was willing to open its membership to the public.

Question 34

Glocker assigned to Baines her right to collect $500 from Palmer. Palmer, who was not notified of the assignment, paid the $500 to Glocker. Can Baines collect the $500 from Palmer?

A) Yes; oral or written assignments are valid without consent.
B) Yes; rights may be delegated without consent of the parties involved.
C) No; full payment made before receiving notification of an assignment completely releases the obligor from any legal obligation to the assignee.
D) No; part payment made before receiving notification of an assignment will reduce the obligor's responsibility to the assignee.

Question 35

Atkins sold Goldon a computer; the price was $1,200, due on March 7. Atkins assigned the debt to Fisher, to whom she (Atkins) owed $1,200. Fisher properly notified Goldon of the assignment. On March 7, Goldon notified Fisher that she could not pay the money because of financial difficulties. In this case, Fisher has a legal right to collect the $1,200 from

A) nobody.
B) Goldon only.
C) Atkins.
D) none of these.

Question 36

Services of an attorney are personal in nature, and thus may not be ____________________.

Question 37

Long executed the following legal document and gave it to George Northman: "In consideration for the $300 I owe to George Northman, I hereby transfer to George Northman a claim I have against Hall in the amount of $300. Thomas Long, March 21, 1990." Hall was properly notified of the assignment by Northman. If Hall does not pay the $300 when it is due, the debt would then be

A) discharged.
B) collectible from Northman.
C) collectible from Long.
D) excused after two years had elapsed.

Question 38

Which statement is correct regarding the transfer of contractual rights?

A) The assignor acquires only such rights as the assignee has under the contract.
B) The assignee acquires only such rights as the assignor has under the contract.
C) The assignee acquires rights greater than the assignor has under the contract.
D) The assignor acquires rights greater than the assignee has under the contract.

Question 39

Personal duties under a contract cannot be transferred without ____________________.

Question 40

An assignment involving real property

A) usually requires no special form.
B) may be made orally.
C) must be in writing.
D) may be made orally or in writing.

Question 41

Is it true with the assignment of a personal right that all parties involved must agree to the transfer? If so, why?

Question 42

After a notice of assignment is received, the obligor must pay or perform for the ____________________.

Question 43

Why is it advisable to give notice once a valid assignment of rights has been made?

Question 44

A written assignment may be either formal or ____________________.

Question 45

Baron contracted in writing to purchase a piece of land from Weil for $35,000. Before the sale was completed, Weil died. Must Weil's executor go through with the sale?

Question 46

____________________ before notification of an assignment releases the obligor from any obligation to the assignee.

Question 47

Hopper hired a prominent trial attorney to represent her in a lawsuit. On the day of the trial, Hopper found that she was represented by the attorney's assistant. What are Hopper's rights?

Question 48

After an assignment of rights has been made, it becomes effective ____________________.

Question 49

When a person dies, her or his rights and obligations are transferred ____________________ to an executor or administrator.

Question 50

Collins contracted to make certain repairs on Brown's outboard motor. Collins assigned the job to Pierce. If Pierce's performance was unsatisfactory, could Brown hold Collins liable?