Question 1

Robert hired James,a CPA,to prepare his tax returns.James was too busy and delegated the work to Sara,also a CPA.This delegation is:

Accepted Answer

The delegation is not enforceable because Robert hired James specifically for his personal services, implying a personal trust or reliance on James's particular skills or reputation as a CPA.

Question 2

Claims for personal injury are generally assignable.

Accepted Answer

Personal injury claims are generally considered personal rights and are not assignable because they are intimately connected with the person of the claimant and involve personal injuries and damages.

Question 3

Contract prohibitions against assignments are invalid as a matter of public policy.

Accepted Answer

Contract prohibitions against assignments are generally valid and enforceable, unless the contract involves personal services or the prohibition violates specific statutes or public policy considerations.

Question 4

Generally,the assignment of the obligation to perform personal services is invalid.

Accepted Answer

The assignment of personal services is invalid because personal services require the specific skill, expertise, or qualifications of the individual who has agreed to render them. Such obligations cannot be fulfilled by another person.

Question 5

If Ray agrees to rake leaves for Michelle in exchange for Michelle's promise to pay off the debt Ray owes to Dean,then Dean is a donee beneficiary of the agreement between Ray and Michelle.

Accepted Answer

A donee beneficiary is someone who benefits from a contract or agreement even though they are not a party to it, but rather a third party. In this case, Dean is not a donee beneficiary of the agreement between Ray and Michelle because Dean is not the intended recipient of the performance or benefit of the agreement. Michelle's promise to pay off Ray's debt to Dean is simply part of the consideration for Ray raking her leaves.

Question 6

A third party beneficiary's status occurs:

Accepted Answer

A third party beneficiary's status occurs when the contract is created, meaning that the parties to the contract intended for the third party to receive a benefit from the performance of the contract, even though the third party was not a party to the contract itself. The third party's status as a beneficiary is established at the time the contract is entered into.

Question 7

An assignment is effective from the moment it is made,provided the assignor notifies the obligor.

Accepted Answer

An assignment is effective from the moment it is made, regardless of whether the obligor is notified. However, notifying the obligor is necessary to ensure the obligor performs to the assignee rather than the assignor.

Question 8

In the case Rosenberg v.Son,Inc.,the Supreme Court of North Dakota held that Pratt was still liable to Rosenberg as she did not obtain a novation by assigning her rights to Son,Inc.

Accepted Answer

The statement accurately reflects the holding of the Supreme Court of North Dakota in the case Rosenberg v. Son, Inc. In that case, the court held that the defendant, Pratt, remained liable to the plaintiff, Rosenberg, even though Pratt assigned her rights in the contract to Son, Inc. The court found that there was no novation - or agreement to release Pratt from liability - between Rosenberg and Son, Inc.

Question 9

The McDougal Foundation contracted with Shiny Cleaning Services to clean their offices every weeknight.In the contract,The McDougal Foundation included a clause prohibiting Shiny from delegating its duties.Courts will ordinarily enforce such a clause.

Accepted Answer

Contract clauses prohibiting delegation of duties are generally enforceable, as they protect the hiring party from having someone unknown or unapproved perform the contracted services.

Question 10

Brandon owes money to Jim.If Jim assigns to Rita his rights to Brandon's money,Jim is:

Accepted Answer

Jim is the assignor because he is transferring his rights to receive money from Brandon to Rita.

Question 11

Generally,duties may not be delegated.

Accepted Answer

The answer of Generally,duties may not be delegated....

Question 12

Most,but not all,contract rights are assignable.

Accepted Answer

Most contract rights can be assigned, but there may be certain rights that are not assignable due to legal limitations or contractual provisions.

Question 13

If Valley Bridge contracts with Rainbow Painters to paint a bridge and the contract requires that only Sherwin Williams paint be used,then Sherwin Williams will be able to enforce the contract against either Valley Bridge or Rainbow Painters.

Accepted Answer

Sherwin Williams is not a party to the contract and therefore cannot enforce it against Valley Bridge or Rainbow Painters. Only the parties to the contract can enforce its terms against each other.

Question 14

If Velma,as a birthday present,assigns to Jim her contractual right to collect $50 from Wood Co.,this would be a gratuitous assignment.

Accepted Answer

A gratuitous assignment is one where the assignor (in this case, Velma) assigns a right or property to the assignee (Jim) without receiving any consideration in return. In this scenario, Velma is giving Jim the right to collect $50 from Wood Co. as a birthday present, without receiving anything in return. Therefore, it is a gratuitous assignment.

Question 15

If Casey assigns her rights to receive income from rental property to Errol,then Errol will legally acquire any rights held by Casey to the income.

Accepted Answer

When Casey assigns her rights to receive income from rental property to Errol, he becomes the legal recipient of the rental income and acquires all the rights held by Casey to that income.

Question 16

A party may make either an assignment or a delegation,but cannot make both an assignment and a delegation simultaneously.

Accepted Answer

An assignment involves transferring rights under a contract to another party, while a delegation involves transferring duties. A party can indeed make both an assignment and a delegation simultaneously if they wish to transfer both their rights and duties under a contract to another party.

Question 17

The beneficiary of a life insurance policy would ordinarily be:

Accepted Answer

A donee beneficiary is the person who receives the benefits of a life insurance policy as a gift from the policyholder. This is the most common type of beneficiary for life insurance policies. A creditor beneficiary is a person or company to whom money is owed, and an incidental beneficiary is someone who may benefit from a policy but is not the intended beneficiary. A debtor beneficiary would be the person who has taken out the life insurance policy for themselves.

Question 18

In the Schauer v.Mandarin Gems of California,Inc.case,the court held:

Accepted Answer

The answer of In the Schauer v.Mandarin Gems of California,Inc.case,the...

Question 19

Norm and Frank have a legal contract that is silent with regard to an assignment of the contract.In order for Norm to assign all or part of his rights under a contract,Frank must grant permission to Norm to make the assignment legally effective.

Accepted Answer

The answer of Norm and Frank have a legal contract...

Question 20

Amanda buys a vacuum cleaner to use in her home from retailer Andy.Amanda promises to pay for it in six monthly installment of $50 each.Andy assigns the contract to Big Finance Co.who paid value and took without notice of any defense.Big Finance Co.sues Amanda for nonpayment.Amanda has stopped making payments because the vacuum stopped working and Andy refuses to honor the express warranty he made to her at the time of the sale.Generally,any defense that Amanda may have against Andy is good against Big Finance Co.

Accepted Answer

The principle of assignability of contracts states that the assignee takes the rights and duties subject to any counterclaims, defenses or setoffs that the obligor had against the original assignor. Therefore, any defense that Amanda may have against Andy, such as his refusal to honor the express warranty, is good against Big Finance Co. who purchased the contract from Andy.

Quiz 15: Third Parties