Question 1

Pico, a famous chef, agrees to give ten culinary les­sons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be​

Accepted Answer

The answer of Pico, a famous chef, agrees to give...

Question 2

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is​

Accepted Answer

This is a third party intended beneficiary contract because Bea intends for Wendell to receive the benefits of the policy upon her death.

Question 3

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of​

Accepted Answer

The answer of Ilene and Jerry enter into a contract...

Question 4

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Accepted Answer

The answer of Laramie contracts to provide cattle-herding services to...

Question 5

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

Accepted Answer

When a party substantially performs their contract, the other party is entitled to damages for the part of the contract that was not fully performed. This is to compensate for the slight deviation from the agreed terms.

Question 6

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest​

Accepted Answer

The answer of Hilda signs a contract with Indemnity Insurance...

Question 7

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Accepted Answer

The clause stating that any assignment is "void" prohibits any assignment, meaning no transfer of rights or obligations can occur under the contract.

Question 8

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Accepted Answer

New Credit Corporation is an intended beneficiary because Lyle and Miranda entered into the agreement with the intent to benefit New Credit by having Miranda's debt paid to them through Lyle's services.

Question 9

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is​

Accepted Answer

The answer of Bill and Charlene enter into a contract...

Question 10

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment​

Accepted Answer

In the context of assignment of rights, notice of the assignment to the debtor (in this case, Ian) is not legally required for the assignment to be effective. The assignment between Jo and Kyle is valid upon agreement, regardless of whether Ian is notified. However, notifying Ian would be practical to ensure that he makes payments to the correct party (Kyle) going forward.

Question 11

Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If the duties under this contract are discharged like those under most contracts, the duties will be

Accepted Answer

The duties under this contract will be performed, as Stephanie has agreed to work as a lifeguard in exchange for a weekly paycheck and free admission to the park's attractions. As long as both parties fulfill their obligations under the contract, the contract will be satisfactorily fulfilled.

Question 12

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

Accepted Answer

Since Even-Bilt completely performs, Discount E-Sales is entitled to nothing more as the terms of the contract have been fulfilled.

Question 13

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

Accepted Answer

If BRI completes most of the work promised in the contract, its performance will be considered substantial. This means that while there may be some minor details left unfinished, the overall scope of the work has been completed to a significant degree.

Question 14

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony​

Accepted Answer

The contract states that Kali will sell her car to Leony for $3,000, and the contract will be fully discharged when the car is exchanged for the money. The exchange of the car for the $3,000 is the most important aspect of the contract as it completes the transaction and satisfies the terms of the agreement. Merely agreeing to sign a bill of sale, signing a receipt, or shaking hands and going separate ways would not fulfill the contractual obligation of Kali to sell the car and Leony to pay for it.

Question 15

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is​

Accepted Answer

The answer of D'Alemberte contracts with Elias to render personal...

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

Accepted Answer

When Kris assigns all rights under the contract to Leza, she is transferring the obligation to perform to Leza, but she remains liable to Joy if Leza does not perform. Kris cannot absolve herself of liability by simply assigning the contract to someone else.

Question 17

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is

Accepted Answer

A delegation is a transfer of duties by one party to another. In this scenario, Pierce is delegating his duties to Rachel to cut and trim the landscaping around OMC's building. Therefore, the correct answer is A) a delegation. An assignment would be the transfer of Pierce's contractual rights to someone else, which is not happening in this scenario. A third party beneficiary contract involves a third party benefiting from the contract, which is not relevant here. Finally, there is no indication that this transfer of duties is prohibited.

Question 18

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is​

Accepted Answer

A creditor beneficiary is a type of third-party beneficiary, which means that a person or entity who is not a party to a contract can still benefit from it. In this case, Business Loans is identified as a creditor beneficiary, which means that it has a right to receive payment from either Carla's Hair Salon or Dani's Nails according to the terms of their contract. Since Business Loans' benefit is intentional and purposeful, it falls under the category of an intended beneficiary.

Question 19

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue​

Accepted Answer

The answer of Leon contracts to install automatic watering troughs...

Question 20

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is

Accepted Answer

Sav-U Economy Lumber is an incidental beneficiary because Paolho's agreement with Roth did not intend to confer a benefit upon Sav-U. The purchase of materials from Sav-U was necessary for Paolho to complete his obligation to Roth under their contract. However, Sav-U did not have a direct contractual relationship with either Paolho or Roth.

Quiz 14: Third Party Rights and Discharge

Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment

Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If the duties under this contract are discharged like those under most contracts, the duties will be

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

Building Restoration, Inc. (BRI) , enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is

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

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is

Quiz 14: Third Party Rights and Discharge

Pico, a famous chef, agrees to give ten culinary les­sons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be​

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is​

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of​

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest​

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits​

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is​

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment​

Stephanie enters into a contract to work as a lifeguard at Tim's Water Park for the summer in exchange for a weekly paycheck and free admission to the park's attractions. If the duties under this contract are discharged like those under most contracts, the duties will be

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

Building Restoration, Inc. (BRI) , enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony​

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is​

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

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is​

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue​

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is

Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is

Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is

Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is

Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue