Question 1

Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Jack

Accepted Answer

The answer of Eli owes Martin $10,000. Martin assigns the...

Question 2

Richly Merchandise, Inc., contracts with Stand-Rite Contractors to build a store. Stand-Rite assigns the contract to Town Builders, which has a poor record of completing projects. Richly could most successfully argue that the contract cannot be assigned because

Accepted Answer

The best argument that Richly Merchandise, Inc., could make to prevent the assignment of the contract to Town Builders is that the assignment will materially increase the risk of nonperformance. This is a valid concern because Town Builders has a poor record of completing projects. Richly may also argue that they did not consent to the assignment but this argument would be less effective because the contract may have allowed for assignment without their explicit consent. The consideration for the assignment is also unlikely to be an issue as long as there was some form of consideration provided to Stand-Rite Contractors for the assignment. Finally, the fact that Town Builders was not an original party to the deal is not relevant as long as they are a valid assignee under the terms of the contract.

Question 3

Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen

Accepted Answer

Kathleen's offer was contingent upon the horse being sound for breeding. Since the veterinarian has concluded that the stallion is not fit for breeding, the condition of the offer has not been met, and Kathleen is not obligated to buy the horse.

Question 4

A contract between Slim and Goldie may not be assigned if it

Accepted Answer

Contracts that involve personal services, such as those between Slim and Goldie, generally cannot be assigned without the consent of both parties.

Question 5

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

Accepted Answer

Under the common law, an assignment of a contract is generally immediately effective and does not require notice to be given to the other party (in this case, Maria) for it to be valid. However, certain contracts or state laws may require notice or impose other limitations on assignments. In this scenario, the question does not specify any such circumstances, so we can assume that the assignment is immediately effective. Option B is not correct because there is no standard thirty-day waiting period for assignments to become effective. Option D is also not correct because it is unclear what is meant by "circumvented" - if there are limitations on assignments, they must be followed for the assignment to be valid.

Question 6

Tristan promises to paint Katy's house in exchange for Lila's promise to plant trees on Tristan's property. This is

Accepted Answer

This is a third party beneficiary contract because Lila is not a party to the original contract between Tristan and Katy, but she will benefit from Katy's house being painted and has agreed to do something in exchange (planting trees on Tristan's property). Therefore, Lila is a third party beneficiary to this contract.

Question 7

Valley View Farms enters into a contract to sell Sarah's Corner Shop a truckload of eggs from free range chickens. Valley View then fails to deliver the eggs to Sarah's Corner Shop. Sarah

Accepted Answer

Since Valley View failed to deliver the eggs, they have breached the contract and Sarah's Corner Shop is not obligated to pay for the eggs. This is based on the principle of "breach of contract" where if one party fails to perform their obligations, the other party is not required to perform their part of the agreement.

Question 8

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $250 price on May 15. The delivery and installation of the sink and the payment of the price are examples of

Accepted Answer

Concurring conditions are obligations that must be performed simultaneously. In this case, the delivery and installation of the sink and the payment of the price are two obligations that must occur at the same time, making them concurrent conditions.

Question 9

Fact Pattern 13-1 
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 13-1. Carol is

Accepted Answer

Carol is an intended beneficiary of the contract between Four-Square Construction Company and Ben, as the remodeling is a gift from Ben to Carol.

Question 10

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

Accepted Answer

The answer of Leonardo contracts to install automatic watering troughs...

Question 11

Fact Pattern 13-1 
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 13-1. The value of Eatery's property will increase after Carol's store is remodeled. Eatery is

Accepted Answer

Eatery Café is an incidental beneficiary because their property value increase is not the intended purpose of the contract between Four-Square Construction Company and Ben to remodel Carol's Home Store.

Question 12

Jack contracts to provide lawn-mowing services to Lee. Jack cannot delegate this duty

Accepted Answer

The answer of Jack contracts to provide lawn-mowing services to...

Question 13

App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is

Accepted Answer

The answer of App Developers, Inc. (ADI), enters into a...

Question 14

Fact Pattern 13-1 
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 13-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is

Accepted Answer

The answer of Fact Pattern 13-1 
Four-Square Construction Company enters...

Question 15

Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat. Joanne agrees to do the portrait to Carol's satisfaction for $100. When Joanne finishes the portrait, Carol announces that she is not satisfied with the portrait because it does not look like her cat. Carol

Accepted Answer

Carol is not satisfied with the portrait, which means that Joanne did not fulfill her part of the contract. Therefore, Carol does not have to accept the portrait or pay Joanne any money. The fact that Carol agreed to accept the portrait "to her satisfaction" does not change this outcome, as her dissatisfaction is reasonable and genuine.

Question 16

Phil enters into a contract to hire Bob's Building Business to build a warehouse for Phil. The contract specifies that the warehouse should be built with HighQual Bricks. When construction starts, HighQual Bricks cannot provide enough bricks for the warehouse. Bob's Building Business substitutes Big Red Bricks, which are comparable in quality and price to HighQual Bricks. This deviation from the contract

Accepted Answer

The substitution of Big Red Bricks for HighQual Bricks does not materially affect the terms of the contract in regards to the quality or price of the bricks. Therefore, the deviation from the contract has no effect on the contract itself.

Question 17

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transfering his right to the ownership of the apartment because such a prohibition is

Accepted Answer

Prohibiting the transfer of property rights is against the public policy, which aims for the free transfer and exchange of property. This is why such provisions are generally considered void and unenforceable, except in limited circumstances where public policy concerns outweigh the individual's right to transfer their property rights.

Question 18

Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be

Accepted Answer

The answer of Pat, a world famous musician and composer,...

Question 19

Dylan enters into a contract to manage the operations of Cash's accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

Accepted Answer

The contract is for Dylan to manage the operations of Cash's accounting office for one year, with the possibility of renewal. If Dylan fulfills his obligations under the contract, such as managing the office competently and according to the terms of the agreement, then the contract will be considered performed. This is the typical outcome for contracts that are fulfilled as intended by their terms.

Question 20

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is

Accepted Answer

The approval from Valley Credit Union is a condition precedent because it must be met before the sale can be completed.

Quiz 13: Third Party Rights and Discharge