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With Regard to the Law Governing Privity of Contract and Assignment

Question 3

Multiple Choice

With regard to the law governing privity of contract and assignment, which of the following is true?


A) A party to a contract for services can assign both his contractual obligations and his contractual rights.
B) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.
C) Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract.
D) Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another.
E) A statutory assignment is more difficult to enforce than an equitable assignment.

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