Question 1

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 legitimately refuse to pay Rapid Explain.

Accepted Answer

The answer of Pam borrows $5,000 from Quality Auto Sales...

Question 2

Heather and Genice agree that Genice can satisfy her debt to Heather by paying the money directly to Fava (to whom Heather owes a debt).The designation of this contract as a third party beneficiary contract is determined by the intent to benefit

Accepted Answer

The intent of the contract is to benefit Fava, who is not a party to the contract, but is designated as the beneficiary. Therefore, this is a third-party beneficiary contract for the benefit of Fava only.

Question 3

Xtra Finance Company is a creditor beneficiary in a deal that involves Yvon and Zack.Xtra,like most creditor beneficiaries,is

Accepted Answer

Xtra Finance Company is specifically named as a creditor beneficiary in the deal, indicating that it is an intended beneficiary with a direct interest in the contract. Therefore, the best choice is C - an intended beneficiary.

Question 4

Linus and Marlena agree that Linus will fix Marlena's roof in exchange for $8,000.Linus spends half of the amount due under the contract to acquire the materials for the job from Natural Roofing Supplies.Natural Roofing is

Accepted Answer

The answer of Linus and Marlena agree that Linus will...

Question 5

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Accepted Answer

The answer of George promises to repair Ford's boat dock...

Question 6

Evergreen Landscapers,Inc.,owes Friendly Finance Company $5,000.Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.Under the contract,Suburban promises to pay Friendly Finance the amount that will be due Evergreen until Evergreen's debt to Friendly Finance is paid.Evergreen performs as promised,but Suburban does not pay Friendly Finance.Can Friendly Finance succeed in a suit against Suburban Why or why not

Accepted Answer

The answer of Evergreen Landscapers,Inc.,owes Friendly Finance Company $5,000.Evergreen enters...

Question 7

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo.Flo's rights under the contract will vest

Accepted Answer

Flo's rights under the contract will vest if she manifests assent to the contract or materially alters her position in justifiable reliance on it. In other words, she must either explicitly agree to the contract, or behave in a way that shows she is relying on the benefits conferred upon her by the contract.

Question 8

Olivia contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Olivia and Phoenix the right to modify its terms.Rural Cooperative's right to payment is

Accepted Answer

Rural Cooperative's right to payment is subject to any change that Olivia and Phoenix make because the contract explicitly reserves the right to modify its terms to the original contracting parties, Olivia and Phoenix.

Quiz 17: Third Party Rights

Heather and Genice agree that Genice can satisfy her debt to Heather by paying the money directly to Fava (to whom Heather owes a debt) .The designation of this contract as a third party beneficiary contract is determined by the intent to benefit

Xtra Finance Company is a creditor beneficiary in a deal that involves Yvon and Zack.Xtra,like most creditor beneficiaries,is

Linus and Marlena agree that Linus will fix Marlena's roof in exchange for $8,000.Linus spends half of the amount due under the contract to acquire the materials for the job from Natural Roofing Supplies.Natural Roofing is

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo.Flo's rights under the contract will vest

Olivia contracts for the sale of this year's strawberry crop to Phoenix,with payment to go to Rural Cooperative Association.The contract reserves to Olivia and Phoenix the right to modify its terms.Rural Cooperative's right to payment is