Question 1

An anti-assignment clause is a clause that prohibits the assignment of rights under contracts.

Accepted Answer

An anti-assignment clause does indeed prohibit the assignment of rights under contracts.

Question 2

All duties can be delegated as long as the delegator promises to guarantee performance.

Accepted Answer

While many duties can be delegated, not all can be delegated. Additionally, the delegator cannot guarantee performance as the delegatee is responsible for executing the delegated duties in a competent manner.

Question 3

Some courts permit the delegation of impersonal duties despite the existence of an anti-delegation clause.

Accepted Answer

Some courts may allow the delegation of impersonal duties even if there is an anti-delegation clause in the contract. This is especially true in cases where the performance of the duty does not require special skills or personal judgment, and can be easily transferred to another party without affecting the core obligations of the contract. However, this may vary depending on the specific language of the anti-delegation clause and the applicable laws in the jurisdiction.

Question 4

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract,the delegation is called an assumption of duties.

Accepted Answer

Where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract, the delegation is not called an assumption of duties. An assumption of duties occurs when the delegatee agrees to assume the duties under the contract.

Question 5

When an assignor makes an assignment of a right under a contract,the assignee is under a duty to notify the obligor that 1)the assignment has been made and 2)performance must be rendered to the assignee.

Accepted Answer

This is known as the duty to notify the obligor of the assignment, and it is generally required in order for the assignment to be effective. Without notification, the obligor may continue to perform under the original contract and would not be liable to the assignee. Therefore, it is important for the assignee to provide notification to the obligor as soon as possible after the assignment is made.

Question 6

An obligor can assert any defense he or she had against the assignor or the assignee.

Accepted Answer

An obligor can assert any defense he or she had against the assignor or the assignee because an assignment does not eliminate the obligor's right to assert valid defenses.

Question 7

When a party improperly assigns the same contract rights to more than one assignee,the American rule provides that the earliest assignment in time prevails.

Accepted Answer

The American rule, also known as the first in time, first in right rule, provides that the first assignee to receive the assignment prevails over any subsequent assignees in cases of multiple assignments of the same contract rights.

Question 8

Anti-assignment clauses are usually given legal effect.

Accepted Answer

Anti-assignment clauses are typically enforceable and can restrict the transfer of a contractual right or obligation to another party.

Question 9

When the delegation of a duty is a declaration of duties,the delegatee becomes legally liable to the obligee to perform the duty.

Accepted Answer

In a delegation of duties, the delegatee is not automatically liable to the obligee unless there is an assumption of duty or a novation agreement. The original obligor remains liable unless the obligee agrees to release them.

Question 10

The "English rule" provides that the first assignment in time prevails,regardless of notice.

Accepted Answer

The "English rule" states that the first assignee to give notice to the debtor prevails, not necessarily the first assignment in time.

Question 11

When a delegator delegates duties,the delegator remains responsible for the performance of the duties.

Accepted Answer

Even after delegating duties, the delegator still holds the ultimate responsibility for the performance of those duties.

Question 12

In a declaration of duties,the delegatee is not liable to the obligee for nonperformance or negligent performance,and the obligee cannot recover damages from the delegatee.

Accepted Answer

In a declaration of duties, the delegatee is generally not held liable for nonperformance or negligent performance, and the obligee cannot recover damages from the delegatee. This is because the delegatee is merely undertaking the duties on behalf of the obligee, and any liability would ultimately rest with the obligee. However, there may be exceptions to this general rule depending on the specific terms and circumstances of the delegation.

Question 13

If the assignee fails to provide notice of assignment to the obligor,the obligor may continue to render performance to the assignor,who no longer has a right to it.

Accepted Answer

This is because the obligor has not been made aware of the assignment and therefore, cannot be held responsible for providing performance to the assignee. However, once notice of assignment has been provided, the obligor must render performance to the assignee instead of the assignor.

Question 14

An approval clause requires that the obligor approve any assignment of a contract.

Accepted Answer

An approval clause is a provision in a contract that requires the obligor's approval or consent for any assignment of the contract to a new party. This is intended to prevent the assignment of the contract to someone who may not be capable of fulfilling the obligations or meeting the expectations of the other party. Therefore, the obligor's approval is required before the assignment can take place.

Question 15

Where a valid delegation of duties contains the term assumption or other similar language,there is a declaration of duties.

Accepted Answer

A valid delegation of duties involves transferring responsibilities from one party to another, but the presence of terms like "assumption" does not automatically constitute a declaration of duties.

Question 16

An obligor can raise the defenses of fraud,duress,undue influence,minority,insanity,illegality of the contract,mutual mistake,or payment by worthless check of the assignor against enforcement of the contract by the assignee.

Accepted Answer

An obligor can indeed raise the defenses of fraud, duress, undue influence, minority, insanity, illegality of the contract, mutual mistake, or payment by worthless check of the assignor against enforcement of the contract by the assignee. This is known as the assignee taking subject to defenses.

Question 17

An anti-assignment clause may be used if the obligor does not want to deal with or render performance to an unknown third party.

Accepted Answer

An anti-assignment clause is a provision in a contract that prohibits one party from assigning its rights or obligations under the contract to a third party without the other party's consent. This clause is often used by obligors who do not want to deal with or render performance to an unknown third party, and it can be an effective way to limit the risks associated with assigning contractual rights or obligations. Therefore, the statement is true.

Question 18

The "American rule" provides that the first assignee to give notice to the obligor prevails.

Accepted Answer

The "American rule" states that the first assignee to receive the assignment prevails, regardless of notice to the obligor.

Question 19

In an assumption of duties,the obligee can sue the delegatee and recover damages from the delegatee for nonperformance or negligent performance by the delegatee.

Accepted Answer

This statement is true. In an assumption of duties, the obligee (person who is owed the duty) can hold the delegatee (person to whom the duty is delegated) responsible for nonperformance or negligent performance, and can sue the delegatee for damages.

Question 20

A minority of states follow the "New York rule" of successive assignments.

Accepted Answer

The answer of A minority of states follow the "New...

Quiz 13: Third-Party Rights and Discharge