Question 1

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 2

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

Accepted Answer

This is a third party intended beneficiary contract, as Nero is specifically named as the intended beneficiary of the life insurance policy.

Question 3

Floyd and Gert enter into a contract by which Floyd promises to deliver fer?tilizer 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 original promisor and party to the contract, therefore he is the obligor (person who has a duty to perform). The fact that he later transfers this duty to Hazel does not change his original role in the contract. Hazel would be considered a delegatee (person to whom the original promisor transfers their duty) in this situation.

Question 4

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 the agreement between Esther and Faisal was made with the intention of fulfilling Esther's debt to Gladys. Therefore, Gladys has a right to enforce the contract.

Question 5

Peri,a world famous musician and composer,agrees to give ten piano les?sons to Quinn in exchange for $1,000.Peri's attempt to transfer her contract duties to Roth,an in?experienced 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,agrees to...

Question 6

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

This is an alienation, which is the transfer of ownership or an interest in property from one party to another.

Question 7

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 prevent the transfer of Isabel's right to receive personal services because the services are personal to her and cannot be provided by anyone other than Jordan. The contract cannot prevent the transfer of Jordan's right to receive funds because it is a monetary right that can be assigned or transferred. The contract cannot prohibit all rights under the contract as it would render the contract void and unenforceable.

Question 8

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 specifically named as a beneficiary in the deal, which indicates an intended beneficiary.

Question 9

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

The answer of Joaquin wants to transfer his right to...

Question 10

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 still responsible for fulfilling the contract with Joy, even if she assigns the rights to another party. If Leza does not perform, Joy can hold Kris liable for breach of the contract.

Question 11

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 12

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 as it has acquired the right to payment under the contract from Ewell.

Question 13

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 into...

Question 14

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 the intended beneficiary of the contract between Vicky and Rashad for the delivery of hospice services.

Question 15

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 situation is a delegation, as Faye is transferring her obligation of catering to Gudren. An assignment would involve a transfer of Faye's rights under the contract to Gudren, which is not the case here. Alienation refers to the transfer of property rights, which is also not applicable in this scenario. Prohibition is not relevant to this situation.

Question 16

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 transferring her right to payment under the contract to County Bank is an assignment, which is a common practice in business transactions. It does not constitute delegation (where Kendra would still be responsible for performance under the contract) or alienation (which is a broader term for transferring ownership of property or assets). There is no indication that the contract prohibits assignment.

Question 17

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 18

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 19

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

In order for Uri to transfer his right to the ownership of the house to Val, he must do so in writing. Any transfer of ownership or interest in real property must be in writing to be enforceable under the Statute of Frauds. Oral agreements are not sufficient in this case. Therefore, the best choice is D.

Question 20

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 in a contract can prevent the transfer of duties that are personal in nature, meaning that they require the specific skills, experience, or personality of the person who entered into the contract. In this case, as Jean Paul is providing greensward services, which may require specific knowledge, expertise, and techniques, it is reasonable to assume that these duties are personal in nature and therefore can be prohibited from delegation.

Quiz 16: A: Third Party Rights

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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