Question 1

Parsley,a world-famous chef,signs a contract to give lessons in French cooking to Curry.Parsley wants to transfer his duties under the con?tract to Relish,the operator of a hot dog concession.The transfer is

Accepted Answer

The transfer is not valid because it depends on Parsley's personal skills. Cooking lessons involve personal instruction and guidance, which cannot be transferred to another party.

Question 2

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly.Reba later transfers her duty under the contract to Troy.Reba is

Accepted Answer

Reba is a delegator because she transferred her duty under the contract to Troy. She is also still an obligor because she is still responsible for making sure that Troy delivers the marketing brochures to Sly, even though Troy is now the one actually carrying out the duty.

Question 3

Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio.When Rico's schedule conflicts,he asks Oliver to perform his duties at the closing.This transfer of duties is

Accepted Answer

This situation involves delegation, which occurs when one party transfers their duties or obligations under a contract to another party. In this case, Rico is delegating his duties at the closing to Oliver due to a scheduling conflict. This is a common practice in business, as long as it is allowed under the terms of the contract and the party receiving the delegation is capable of performing the duties required. Therefore, option A is the correct choice. The other options are not applicable in this situation.

Question 4

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

As a third party beneficiary, Jen's rights under the contract depend on the terms of the contract and the intent of the parties at the time they entered into the contract. If Jen's rights have already vested, meaning that she has relied on the contract in some way, Kyla and Leo cannot modify or rescind the contract without Jen's consent. However, if Jen's rights have not yet vested, Kyla and Leo can modify or rescind the contract without her consent. Therefore, the correct answer is D, before Jen's rights have vested.

Question 5

Commercial Shipping,Inc. ,and Dock Services Corporation enter into a contract for Dock to load Commercial's barges for which Commercial agrees to pay Dock.Dock transfers its duty to load the barges to Riverside Freight Company.Dock is

Accepted Answer

Dock Services Corporation is a delegator because it has transferred its duty to perform (loading the barges) to another party (Riverside Freight Company).

Question 6

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.Halfway through the project,Bayside refuses to finish the job.The contract can be enforced against Bayside by

Accepted Answer

The answer of Fact Pattern 16-B1 
Bayside Construction Company enters...

Question 7

Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month.Jocasta can?not transfer this duty

Accepted Answer

Jocasta cannot transfer her duty to provide lawn-mowing services to Kevin without continuing to be potentially liable for the performance of the contract.

Question 8

Fiorella and Midwest Agri-Ship,Inc. ,enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest.Due to schedule conflicts,Midwest contacts Hybrid Crop Transport Company,to which Midwest "assigns all rights under the contract." This transfer is

Accepted Answer

This transfer is both an assignment (transfer of rights) and a delegation (transfer of duties) as Midwest is transferring their obligation to Hybrid Crop Transport Company to transport the silo of corn and their right to be paid by Fiorella.

Question 9

A contract between Drill-Bit Sharpeners,Inc. ,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Accepted Answer

The clause stating that any assignment is "void" means that any assignment of rights or obligations under the contract is prohibited. Therefore, option A - any assignment - is the correct answer.

Question 10

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.Dewey is

Accepted Answer

Dewey is an intended beneficiary because the contract between Bayside Construction Company and Clio specifically identifies Dewey's Home Store as the place to be remodeled, indicating an intent to benefit Dewey.

Question 11

Betty assigns her right to payment of a loan to Cody.Cody is

Accepted Answer

Cody is a creditor beneficiary because he is receiving the right to payment of a loan that Betty owed to someone else. His benefit is not a gift or voluntary act but rather a debt that Betty owes to him.

Question 12

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.The value of Fresh Food's property will increase after Dewey's store is remodeled.Fresh Food is

Accepted Answer

Fresh Food Café is an incidental beneficiary because the increase in property value is a secondary effect of the contract between Bayside Construction and Clio, not a direct intention of the contract.

Question 13

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Accepted Answer

This is a third party beneficiary contract because George and Efrem are making promises to each other that benefit a third party, Ford, by having his boat dock repaired.

Question 14

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.Eagle will realize a profit from the sale of prod?ucts to Bayside to remodel Dewey's store.Eagle is

Accepted Answer

Eagle is an incidental beneficiary because it will benefit from the contract between Bayside and Clio, but it is not a party to the contract and did not provide any consideration for it.

Question 15

Heather and Genice agree that Genice can satisfy her debt to Heather by pay?ing the money directly to Fava (to whom Heather owes a debt).The designation of this con?tract as a third party benefi?ciary contract is determined by the intent to benefit

Accepted Answer

The intent of the contract is to benefit Fava, who is the third party in this transaction. Heather and Genice are agreeing to have the debt paid directly to Fava, indicating that Fava is the intended beneficiary of the contract. Therefore, choice D is the correct answer.

Question 16

Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60.Cory wants to transfer her right to payment for the book to Del.This transfer

Accepted Answer

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

Question 17

Nashville Harmonies Inc.and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her.Taylor transfers her right to payment under the contract to Omni Entertainment Agency.In the transfer of rights,Taylor is

Accepted Answer

Taylor is transferring her rights under the contract, which makes her an assignor.

Question 18

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 because the benefit he receives was not intended by Ron or Stu, but rather was an unintended consequence of their contract. Incidental beneficiaries do not have any rights under the contract and cannot enforce it.

Question 19

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

Tanya is attempting to terminate her contract with Drew, not assign it or create a third party beneficiary contract.

Question 20

Basil and Rosemary enter into a contract for the sale of Basil's condominium to Rosemary.She transfers her right to be recorded as the owner of the property to her son Sage.This transfer is

Accepted Answer

The transfer of Rosemary's right to be recorded as the owner of the property to her son Sage is an assignment. An assignment is the transfer of one's rights or interests under a contract to another person. In this case, Rosemary is assigning her right to be recorded as the owner of the property to her son Sage.

Quiz 16: B: Third Party Rights