Question 1

Tanya attempts to free herself from the duties of her contract with Drew by telling Drew to find someone else to perform them.This is

Accepted Answer

The answer of Tanya attempts to free herself from the...

Question 2

Bret and Cory enter into a contract under which Bret agrees to sell his textbook to Cory for $60 at the end of the fall semester.Bret wants to transfer his right to payment for the book to Del.This transfer

Accepted Answer

The transfer of rights, known as an assignment, can generally be made orally or in writing unless a specific law requires it to be in writing.

Question 3

An "assignment of all rights" absolves the assignor of all liability under the contract that created the rights.

Accepted Answer

An "assignment of all rights" means that the assignor is transferring all of their rights to someone else, but it does not necessarily absolve them of liability under the original contract. The assignee may still be able to hold the assignor responsible for any breaches or issues that occurred before the assignment.

Question 4

If a contract does not require that performance be rendered directly to a third party,the third party will be considered an intended beneficiary.

Accepted Answer

If a contract does not explicitly state that a third party is an intended beneficiary and performance is not required to be rendered directly to them, then the third party is considered an incidental beneficiary rather than an intended beneficiary.

Question 5

An incidental beneficiary can sue directly to enforce a promisee's promise.

Accepted Answer

An incidental beneficiary cannot sue directly to enforce a promisee's promise. Only the promisee or the intended beneficiary can sue to enforce a promise made to them.

Question 6

A third party beneficiary contract is formed when a contract confers a benefit on any third party.

Accepted Answer

A third party beneficiary contract is formed when a contract is entered into between two parties, but it is intended to confer a benefit on a third party who is not a party to the contract. The third party can then enforce the contract against the parties who are bound by it.

Question 7

Any third party beneficiary to a contract who is not an intended beneficiary is incidental.

Accepted Answer

This statement accurately describes the term "incidental beneficiary". An incidental beneficiary is not intended to benefit from the contract and has no legal rights or ability to enforce the contract.

Question 8

The vesting of contractual rights in a third party will always prevent the original parties to the contract from modifying it.

Accepted Answer

The vesting of contractual rights in a third party does not necessarily prevent the original parties to the contract from modifying it. However, it may require the consent of the third party depending on the terms of the contract and applicable laws.

Question 9

McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is

Accepted Answer

The transfer of McCall's right to payment under the contract to Midtown Bank is an example of an assignment. Assignment is a transfer of a party's rights under a contract to a third party. In this case, McCall transferred his right to receive payment from Teresa to Midtown Bank.

Question 10

The rights of a third party beneficiary under a contract with two other parties vest when the conditions for vesting are satisfied.

Accepted Answer

This statement is true. The third party beneficiary's rights under a contract will come into effect and be enforceable once the conditions for vesting those rights are met. Once the rights are vested, the third party beneficiary may take legal action to enforce them if necessary.

Question 11

If a contract does not require that performance be rendered directly to a third party,the third party may be considered an incidental beneficiary.

Accepted Answer

An incidental beneficiary is someone who benefits from a contract, but is not a party to the contract and does not have enforceable rights under the contract. If a contract does not specifically require performance directly to a third party, that party would be considered incidental and would not have enforceable rights.

Question 12

An incidental beneficiary can sue directly to enforce a promisor's promise.

Accepted Answer

An incidental beneficiary is someone who is not party to the contract but stands to benefit from its performance. They cannot sue directly to enforce a promisor's promise because they lack privity of contract. Only the parties to the contract can sue on it.

Question 13

No special form is required to create a delegation of duties.

Accepted Answer

A delegation of duties can be made orally or in writing, and it does not require any specific form. However, a written agreement may be helpful to avoid any misunderstandings or disputes that may arise later.

Question 14

A third party's right to control the details of performance of a contract indicates that the third party is an intended beneficiary.

Accepted Answer

According to the doctrine of intended beneficiaries, a third party is considered an intended beneficiary if the contract specifically identifies them and gives them the right to control the performance details. This indicates that the contracting parties intended for the third party to benefit from the agreement.

Question 15

Fitch and Gert enter into a contract for the distribution of Fitch''s produce to local restaurants and wineries for which Fitch agrees to pay Gert.Gert transfers his right to payment under the contract to Honor Bank.This transfer is

Accepted Answer

The transfer of right to payment under the contract from Gert to Honor Bank is an assignment. A delegation would involve Gert transferring only his duties under the contract to another party. An obligato is not a legal term. While the contract may prohibit assignments, the question does not provide that information.

Question 16

An intended beneficiary can sue directly to enforce a promisor's promise.

Accepted Answer

An intended beneficiary has the right to sue for breach of contract and enforce the promise made by the promisor. This means that they have the ability to directly enforce the contract, without having to involve the promisee (the person who made the promise).

Question 17

A third party beneficiary contract is formed only when the parties to a contract intend to confer a benefit on a third party.

Accepted Answer

The answer of A third party beneficiary contract is formed...

Question 18

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is

Accepted Answer

Flex Construction Company is an assignee because they have received a transfer of Ewell's right to be paid under the contract.

Question 19

The rights of a third party beneficiary under a contract are subject to any express reservation of rights in the contract to the original parties.

Accepted Answer

The rights of a third party beneficiary can be limited by any express reservation of rights made in the original contract between the two parties.

Question 20

A delegation relieves the party making it of the obligation to perform.

Accepted Answer

A delegation transfers the obligation to perform to another party, but it does not relieve the original party of the obligation. The original party remains responsible for ensuring that the delegated task is completed properly.

Quiz 17: Third Party Rights