Question 1

Fact Pattern 15-1 (Questions 29-31 apply)
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 15-1.Carol is

Accepted Answer

Carol is an intended beneficiary because the remodeling is a gift from Ben to Carol and the contract was entered into with the intention of benefiting Carol, even though she was not a party to the contract.

Question 2

Devon makes a contract with Edie that indirectly benefits Felipe.Neither Devon nor Edie intended this result.This is

Accepted Answer

Since neither Devon nor Edie intended to benefit Felipe, it does not qualify as a third party beneficiary contract. It is also not a delegation or an assignment, as those involve transferring duties or rights, which is not the case here.

Question 3

John promises to paint Kay's house in exchange for Lila's promise to plant trees on John's property.This is

Accepted Answer

A third party beneficiary contract is a contract in which a third party, who is not a party to the contract, can enforce the contract. In this case, Lila is the third party beneficiary because she is not a party to the contract between John and Kay, but she can enforce the contract to require John to paint her house.

Question 4

App Developers,Inc.(ADI),enters into a contract with Carmen,the chief executive officer of SalesCorp,to create an app for the firm.To fulfill the contract,ADI hires Max and ten other student interns.With respect to the contract,Max is

Accepted Answer

The answer of App Developers,Inc.(ADI),enters into a contract with Carmen,the...

Question 5

Fact Pattern 15-1 (Questions 29-31 apply)
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 15-1.The value of Eatery's property will increase after Carol's store is remodeled.Eatery is

Accepted Answer

Eatery Café is an incidental beneficiary because they will benefit from the increased property value only as a result of the contract between Four-Square Construction Company and Ben, but they are not a party to the contract and were not intended to benefit from it.

Question 6

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim is

Accepted Answer

Tim is an incidental beneficiary since he is not directly named in the contract and the benefit to him was unintentional.

Question 7

Fact Pattern 15-1 (Questions 29-31 apply)
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store,using products from Delta Building Supplies.Eatery Café is next to Carol's Home Store.The remodeling is a gift from Ben to Carol.
-Refer to Fact Pattern 15-1.Delta will realize a profit from the sale of prod?ucts to Four-Square to remodel Carol's store.Delta is

Accepted Answer

Delta is an incidental beneficiary because they benefit from the contract between Four-Square and Ben indirectly, without being the intended recipient of the contract's benefits.

Question 8

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Accepted Answer

The answer of Jen is a third party beneficiary under...

Question 9

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is

Accepted Answer

Gladys is an intended beneficiary because the agreement between Esther and Faisal was made with the express purpose of paying off Esther's debt to Gladys. Therefore, Gladys is intended to benefit from the agreement between Esther and Faisal.

Question 10

Dale and Elin sign a contract that intentionally confers a benefit on Federica.Federica's rights under the contract will vest

Accepted Answer

Federica's rights will vest if she either manifests assent to the contract or materially alters her position in detrimental reliance on it. This means that she must either agree to the contract or change her behavior or position based on the contract in order for her rights to be valid. The contract intentionally confers a benefit on her, but she still needs to take action in order to claim those rights.

Question 11

Pam borrows $5,000 from Quality Auto Sales to buy a car. When Pam does not pay the loan or return the car,Quality wants to transfers the right to the payment to Rapid Collection Agency.Rapid agrees to pay Quality for this right,but for a price that is less than the amount owed.Can Quality transfer this right to Rapid without Pam's consent? If so,and Quality committed fraud in the deal with Pam,could Pam legiti?mately refuse to pay Rapid? Explain.

Accepted Answer

The answer of Pam borrows $5,000 from Quality Auto Sales...

Question 12

A-One Landscapers,Inc.,owes Friendly Finance Company $5,000. A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban's property. Un?der the contract,Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One's debt to Friendly Finance is paid. A-One performs as promised,but Suburban does not pay Friendly Finance. Can Friendly Finance succeed in a suit against Suburban? Why or why not?

Accepted Answer

The answer of A-One Landscapers,Inc.,owes Friendly Finance Company $5,000. A-One...

Quiz 15: Third Party Rights