Question 1

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is
A) a delegation.
B) an assignment.
C) an alienation.
D) prohibited.

Accepted Answer

Kendra has transferred her right to payment under the contract to County Bank, which is an assignment. A delegation would involve Kendra transferring her obligation to perform under the contract to someone else, which is not the case here. The transfer is not prohibited unless the contract explicitly prohibits it, and it is not an alienation as Kendra is not transferring ownership of the contract itself.

Question 2

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven. This contract may not be assigned if
A) the assignment will significantly change the risk of nonperformance.
B) the assignment is expressly prohibited by the terms of the contract.
C) the contract is uniquely personal in nature.
D) any of the choices.

Accepted Answer

The answer of Ralph and Sven enter into a contract...

Question 3

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This is
A) a delegation.
B) an assignment.
C) a third party incidental beneficiary contract.
D) a third party intended beneficiary contract.

Accepted Answer

Lois's life insurance policy with Mega Insurance Corporation is a third party intended beneficiary contract because she named her son, Nero, specifically as the beneficiary. This means that Nero has a direct stake in the contract and can legally enforce the terms of the policy.

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
A) a delegatee.
B) an intended beneficiary.
C) an incidental beneficiary.
D) an alien to the contract.

Accepted Answer

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

Question 5

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is
A) a delegatee.
B) an assignee.
C) an obligee.
D) an alien.

Accepted Answer

Flex Construction Company is an assignee because they have received the right to payment under the contract from Ewell. In an assignment, the assignee steps into the shoes of the original party (Ewell) and becomes entitled to the benefits and subject to the obligations of the contract. A delegatee, on the other hand, is someone who is appointed by a party to perform their duties under the contract. An obligee is a party who is entitled to receive the benefits of a contract. An alien has no relevance to this situation.

Question 6

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty under this contract to Timber Logging Company. Timber is
A) a delegatee.
B) an assignee.
C) an obligee.
D) an alien.

Accepted Answer

The answer of Rural Development Corporation (RDC) and Sid enter...

Question 7

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez. In most states, this transfer
A) is prohibited.
B) may be oral or written.
C) must be implied.
D) must be in writing.

Accepted Answer

In most states, the transfer of an employment contract requires a written agreement between the original employee and the new assignee. Therefore, the transfer of Joaquin's right to his wages must be in writing.

Question 8

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund. This is
A) a delegation.
B) an assignment.
C) a third party beneficiary contract.
D) an alienation.

Accepted Answer

This is a third party beneficiary contract because Sigmund is not a party to the contract between Vicky and Rashad, but is intended to benefit from the delivery of hospice services.

Question 9

Peri, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Peri's attempt to transfer her contract duties to Roth, an inexperienced pianist, will probably be
A) permitted because contracts may be freely delegated.
B) permitted because the contract is concerned with music lessons.
C) prohibited because contracts may not be freely delegated.
D) prohibited because Peri and Roth have very different skill levels.

Accepted Answer

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

Question 10

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is
A) a delegation.
B) an assignment.
C) an alienation.
D) prohibited.

Accepted Answer

This transfer of duties is a delegation. A delegation is a transfer of duties by one person (the delegator) to another person (the delegatee) to perform. In this case, Faye is delegating her duties to Gudren to serve coffee and pastries at the meeting.

Question 11

Jordan and Isabel enter into a contract under which Jordan agrees to cater Isabel's wedding in exchange for $5,000. The contract can expressly prohibit and prevent the transfer of
A) Jordan's right to receive funds.
B) Isabel's right to receive personal services.
C) no rights under the contract.
D) all rights under the contract.

Accepted Answer

The contract can prohibit and prevent the transfer of Isabel's right to receive personal services, as this involves the specific personal skills and abilities of Jordan as a caterer. However, Jordan's right to receive funds can generally be assigned or transferred to another party, unless the contract specifically prohibits it. Therefore, option A is incorrect. Option C is not a valid answer as there may be certain rights that can be restricted under the contract. Option D is too broad and not specific to the question.

Question 12

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links. Under an antidelegation clause, their contract can prohibit and prevent the transfer of
A) duties that are personal in nature.
B) duties that are impersonal in nature.
C) no duties under the contract.
D) all duties under the contract.

Accepted Answer

An antidelegation clause prevents the transfer of duties that are personal in nature, such as those involving trust, skill, or discretion. Therefore, option A is the correct answer.

Question 13

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this duty to Hazel. Floyd is
A) a delegatee.
B) an obligee.
C) an obligor.
D) an assignee.

Accepted Answer

Floyd is the obligor because he is the party who made the initial promise to deliver the fertilizer to Gert. He can delegate this duty to someone else, like Hazel, but he still remains ultimately responsible for ensuring that the duty is fulfilled. A delegatee would be someone to whom the duty is delegated, but in this scenario, that would be Hazel. An assignee would be someone to whom Floyd transfers his rights under the contract, but in this scenario, he only transferred his duty.

Question 14

Nick contracts for the sale of this year's strawberry crop to Phoenix, with payment to go to Rural Cooperative Association. The contract reserves to Nick and Phoenix the right to modify its terms. Rural Cooperative's right to payment is
A) not affected by the reservation.
B) subject to any change that Nick and Phoenix make.
C) limited only if Rural Cooperative agrees to any changes.
D) terminated by the reservation.

Accepted Answer

The answer of Nick contracts for the sale of this...

Question 15

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $200,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer
A) is prohibited.
B) may be oral or written.
C) must be implied.
D) must be in writing.

Accepted Answer

The transfer of ownership from Uri to his niece, Val, requires a written agreement, such as a deed or other written instrument. This is because transfers of real property interests must comply with the Statute of Frauds, which generally requires written agreements to be enforceable in court. Oral agreements for the transfer of real property interests are not enforceable.

Question 16

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is
A) absolved of any liability under the contract.
B) in breach of the contract with Joy.
C) liable to Joy if Leza does not perform.
D) liable to Leza for inducing a prohibited contract.

Accepted Answer

Kris is not absolved of liability under the contract just because he has assigned his rights to someone else. If Leza does not perform or breaches the contract, Joy can still hold Kris liable for the breach since he was the original party to the contract. However, Kris is not in breach of the contract with Joy as he is still fulfilling his obligation of having someone else lay sod in Joy's yard. Moreover, there is no prohibition on Kris assigning his rights under the contract to someone else, so he is not liable to Leza for inducing a prohibited contract.

Question 17

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo as the designated beneficiary. Flo's rights under the contract will vest
A) automatically.
B) if she demonstrates her consent to the promise at Dale's request.
C) if Everbest attempts to modify the terms of the contract.
D) never.

Accepted Answer

The answer of Dale signs a contract with Everbest Insurance...

Question 18

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a debt owed by Esther to Gladys. Gladys is
A) a delegatee.
B) an intended beneficiary.
C) an incidental beneficiary.
D) an alien to the contract.

Accepted Answer

Gladys is an intended beneficiary because she is the intended recipient of the performance (payment of the debt) under the contract between Esther and Faisal. The contract was entered into with the purpose of benefiting Gladys.

Question 19

Consumers Credit Company is a creditor beneficiary in a deal that involves Devon and Elena. Consumers Credit, like most creditor beneficiaries, is
A) a donee beneficiary.
B) an incidental beneficiary.
C) an intended beneficiary.
D) one of the original contracting parties.

Accepted Answer

Consumers Credit Company is mentioned as a creditor beneficiary, implying that its role is to receive benefits from a contract involving Devon and Elena. The fact that it is specifically identified as a creditor beneficiary indicates that it is an intended beneficiary, i.e., a third party that was intended to benefit from the contract. This distinguishes it from an incidental beneficiary, who may receive indirect benefits from a contract but is not specifically named or intended to receive them. A donee beneficiary is a third party who receives a gift under a contract, which is not the case here. Consumers Credit Company is not one of the original contracting parties since it is a third party.

Question 20

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him. This is
A) a delegation.
B) an assignment.
C) a third party beneficiary contract.
D) an alienation.

Accepted Answer

Alienation means the transfer of ownership or property rights to another person. In this case, Phaedra and Raul are transferring ownership of their lake cottage to Sheldon. Therefore, an alienation is the correct choice.

Quiz 16: Third Party Rights

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is

Ralph and Sven enter into a contract under which Sven agrees to guide Ralph's expedition through Tibet for which Ralph agrees to pay Sven. This contract may not be assigned if

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This 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

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty under this contract to Timber Logging Company. Timber is

Joaquin wants to transfer his right to the payment of his wages under an employment contract with Free-Flo Plumbing Company to Inez. In most states, this transfer

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund. This is

Peri, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Peri's attempt to transfer her contract duties to Roth, an inexperienced pianist, will probably be

Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is

Jordan and Isabel enter into a contract under which Jordan agrees to cater Isabel's wedding in exchange for $5,000. The contract can expressly prohibit and prevent the transfer of

Jean Paul and Hermosa enter into a contract under which Jean Paul agrees to provide greensward services for Hermosa's Golf Links. Under an antidelegation clause, their contract can prohibit and prevent the transfer of

Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this duty to Hazel. Floyd is

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

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $200,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

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

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a debt owed by Esther to Gladys. Gladys is

Consumers Credit Company is a creditor beneficiary in a deal that involves Devon and Elena. Consumers Credit, like most creditor beneficiaries, is

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him. This is